FinTech companies already active in or looking to enter the Nigerian capital market may now participate in the Regulatory Incubation (RI) initiative, launched by the Securities and Exchange Commission (SEC).
The Commission announced this in a circular. The portal would be available from April 28th to May 26th, 2023, as stated in the circular, during which time both registered capital market operators and unregistered Fintech innovators who need regulation are urged to apply.
The SEC maintains that the decision to launch the site stems from a 2021 circular in which the Commission disclosed the impending roll-out of the SEC Regulatory Incubation (RI) initiative for FinTechs now functioning in or aspiring to enter the Nigerian Capital Market. According to the Securities and Exchange Commission (SEC), “The Regulatory Incubation (RI) programme is intended to meet the needs of new business models and processes that require regulatory authorization to continue conducting full or ancillary technology-driven capital market operations.”
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The SEC said that the RI Programme was designed as a temporary solution to facilitate the development of appropriate regulation that allows for FinTech innovation without sacrificing market integrity and within bounds that safeguard investor safety.
Companies interested in applying to the SEC’s Regulatory Incubation Programme must show that they satisfy five requirements, including that their innovations are appropriate for use in Nigeria’s capital market and pose no risk to investors, as outlined by the SEC. new product or procedure introduced to meet the demands of investors; addresses current problems with regulatory oversight (optional); is ready for beta testing.
