SEC Nigeria Launches Finech Regulatory Incubation Portal – Unregistered Fintech Innovators Welcome to Apply – BitcoinKE
The Securities and Exchange Commission (SEC) of Nigeria has asked financial technology (fintech) companies operating or planning to operate in the Nigerian capital market to register for the Regulatory Incubation (RI) programme.
Notice of approval of applications for the Regulatory Incubation (RI) programme
Notice available here:— SEC Nigeria (@SECNigeria) 28 April 2023
According to a circular from the Commission, the portal for the RI program will be available to fintech companies from 28 April 2023 – 26 May 2023.
The decision to open a portal is said to be a follow-up to a 2021 notice from the commission on the upcoming launch of the scheme for fintechs. According to the SEC, firms wishing to participate in the program must meet five eligibility requirements.
The requirements are:
- Applicants must provide security for investors
- aGenuine innovation that introduces a new product/process to serve specific investor needs
- Be able to resolve existing compliance or oversight issues (optional)
- Be ready for testing
“Please provide as much information as possible about how you meet these criteria when you submit your application. If you want to test your proposal, you can apply for an engagement session. it said.
The circular also notes that fintech companies operating in areas such as crowdfunding, robo-advisory/digital investment advisory, and sub-brokers servicing multiple brokers using a digital platform have been advised not to apply for the regulatory incubation program as there are already regulations on space 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 RI program has therefore been conceived as an interim measure to assist the development of effective regulation that accommodates the innovation of fintechs without compromising market integrity and within limits that ensure investor protection,” The SEC added.
The circular emphasized that the following entities are eligible to apply for the program:
- Registered capital market participants
- Unregistered fintech innovators requiring regulation
- Companies of all sizes looking to increase investor participation in the Nigerian capital market
See also
The SEC also noted that specific cohorts will be announced at specific times. For comprehensive guidance on how to apply for admission to the Regulatory Incubation Program, please click here.
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