THE SECURITY AND EXCHANGE COMMISSION’S REGULATORY INCUBATOR PROGRAM

The Securities and Exchange Commission’s regulation of technological innovations in Nigeria’s capital market has become increasingly challenging due to the influx of innovative products into the sector and these products’ speed to the market. Consequently, on 16th June 2021, the Securities and Exchange Commission (SEC or the Commission) issued a circular on the SEC Regulatory Incubation Program (the Circular), wherein the Commission noted its plans to kick off a Regulatory Incubation (RI) program for financial technology (Fintech) businesses in Nigeria.

The RI program is intended to enable Fintechs operating or intending to operate in Nigeria’s capital market, whose business models and processes cannot be categorically situated within SEC’s regulatory framework, to undertake a limited operation of their product within a controlled environment under SEC’s supervision, as well as afford SEC a one-year period to, among others, resolve any regulatory uncertainty relating to the relevant Fintech product.

LEAVE A REPLY

Please enter your comment!
Please enter your name here