Circular on the SEC Regulatory Incubation Program

The Securities and Exchange Commission (SEC) announces the imminent roll-out of the SEC Regulatory Incubation (RI) program for FinTechs operating or seeking to operate in the Nigerian Capital Market.

The Regulatory Incubation (RI) program is designed to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven Capital Market activities. The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by FinTechs without compromising market integrity and within limits that ensure investor protection.

The RI Program will be launched in the third quarter of 2021 and will operate by admitting identified Fintech business models and processes in cohorts for a one-year period. Participation in the RI program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase. The categories to be admitted into each cohort will be determined based on submissions received through the FinTech Assessment Form and communicated ahead of each take-off date.

Review of completed Fintech Assessment Forms will continue on an ongoing basis. FinTechs who consider that there is no specific regulation governing their business models or who require clarity on the appropriate regulatory regime for seeking the authorisation of the Commission, are encouraged to complete the Fintech Assessment Form.

For more information on the Regulatory Incubation Program, a copy of the Regulatory Incubation Guidelines can be downloaded from the SEC Innovation and Fintech Portal.