APPLY: SEC needs fintech firms for regulatory incubation program
The Securities and Exchange Commission (SEC) has opened the application portal for its Regulatory Incubation (RI) program for fintech firms operating or seeking to operate in the Nigerian capital market.
The commission said in a recently released circular that the portal opened on April 28, 2023 and will close by May 26, 2023.
Registered capital market players as well as unregistered fintech innovators that require regulation are encouraged to apply, the SEC added.
The SEC said the decision to open a portal stems from a 2021 circular in which it announced the imminent rollout of the RI program for fintechs operating or seeking to operate in the Nigerian capital market.
“Please refer to the June 2021 Securities and Exchange Commission (SEC) Circular announcing its Regulatory Incubation (RI) Program for fintech firms operating or seeking to operate in the Nigerian capital market,” the circular said.
“This is to inform that the portal for submitting applications is now ready to receive applications from batch 001/23, from 28/04/2023 to 26/05/2023. Cohorts will be announced at specific times.”
The circular identified suitable applicants to be “registered capital market operators, unregistered fintech innovators requiring regulation, firms of all sizes and firms seeking to increase investor participation in the Nigerian capital market”.
The commission noted that companies interested in applying and participating in the RI program must demonstrate that they meet the five eligibility criteria.
According to the organization, applicants must demonstrate that their innovation is for use in Nigeria’s capital market, safe for investors, introduces a new product/process to serve specific investor needs, capable of solving existing compliance or supervisory issues (optional) and ready. for testing.
“Please provide as much information as possible about how you meet these criteria when you submit your application. If you wish to test your proposal, you may request an engagement session,” the SEC said.
The commission further revealed that fintechs in the areas of crowdfunding, robo-advisory/digital investment advice and sub-brokers serving multiple brokers using a digital platform are encouraged not to apply, citing existing “regulations for them”.
“The regulatory incubation (RI) program is designed to address the needs of new business models and processes that require regulatory authorization to continue to conduct full or additional technology-driven capital markets activities,” the commission said.
