Welcome to FinPort, the SEC’s Portal where innovations and Financial Technology (FinTech) are encouraged and facilitated. The SEC believes that the driver to transforming Nigeria into a smart financial centre is the provision of a regulatory environment that is conducive for innovative use of technology. FinPort has been established to assist all new and even existing Financial Technology (FinTech) businesses to understand the regulatory demands or requirements relevant to the Nigerian capital market.
The Securities and Exchange Commission Nigeria as the apex regulator of the Nigerian Capital Market, is empowered by the Investment and Securities Act 2007 to regulate and develop the Nigerian Capital to ensure fairness, integrity, ease and freedom of participation (entry & exit). In that light, the SEC is always fully alert in tracking new developments in the financial markets in general and the Capital Market in particular. The evident preponderance in the Nigerian Financial Markets as in other global markets, of new innovations aimed at enhancing financial products and services through the application and utilization of technology tools among others, necessitates the creation and adoption of adequate processes and tools to satisfactorily deliver on the Commission’s mandate.
The financial innovation landscape as agreed by all, is an evolving one. The Commission like regulators all over the world, is prepared to evolve with it. It has put mechanisms in place to understand these new innovations, build required capacity and subsequently deploy strategies to address them. This process is an ongoing one and the Commission is deeply committed to this new phase and face of our Capital Market.
In the Commission’s resolve to facilitate innovation in the Nigerian Capital Market, it has articulated and adopted a three-pronged objective to regulate innovation. While it is both accommodating and futuristic, it also ensures adherence to our regulatory mandate and aims to provide confidence to all stakeholders. This objective hinged on safety, market deepening and solution to problems as outlined below, will guide our strategy, our regulations and our interaction with innovators seeking legitimacy and relevance, thereby creating value in the Nigerian Capital Market.
Three-pronged Objective to Regulate Innovation in the Nigerian Capital Market
Indeed SEC Nigeria is committed to a journey whose destination though uncertain will undoubtedly experience different turns, several weather conditions and diverse vehicles. All stakeholders are urged to come on board and commit to developing a Capital Market that will contribute in a more resounding way, to the economic development of our Nigeria.
The Commission’s Regulatory Incubation (RI) program is designed to address the needs of new business models and processes that require regulatory authorization to continue carrying out full or ancillary technology-driven Capital Market activities. It is conceived as an interim measure to aid the evolution of effective regulation which accommodates innovation by FinTechs without compromising market integrity and within limits that ensure investor protection.
The RI program operates by admitting identified Fintech business models and processes in cohorts for a one-year period. Participation in the RI program encompasses an Initial Assessment Phase and the Regulatory Incubation Phase. Applicants must first complete the initial assessment phase before approval is granted to proceed to the regulatory incubation phase. The categories to be admitted into each cohort is determined based on submissions received through the Fintech assessment form.
Steps for Admission into the Regulatory Incubation Program
|A. Initial Assessment|
|Step 1||First access and complete the Fintech Initial Assessment (FIA) Form||N/A|
|Step 2||Receipt of Response/Acknowledgment of Submission:||Within 15 working days|
|1. Where a framework exists for regulating the applicant’s innovation, guidance will be provided on the next steps|
|2. Where the proposed innovation is eligible for further consideration, but no framework exists for its regulation, the applicant will be directed to fill and submit the Regulatory Incubation (RI) Form|
|Step 3||Comply with steps provided in Step 2 above or Fill and submit Regulatory Incubation Form as applicable||Within 16 working days of confirmation of eligibility for entities proceeding to the RI Program|
Receipt of Response on submitted RI Form on one of the following:
a) Whether or not admission has been granted to the RI Program and the Terms and Conditions of Admission;
b) An indication of a future date when Applicant will be admitted to the Regulatory Incubation Program;
c) Reasons for rejecting the innovation and the next steps to take where application is declined.
|within twenty (20) working days|
B. Regulatory Incubation Program
|Step 1||File Undertaking to abide by the terms, conditions and restrictions of admittance into the RI Program||Within three working days of receipt of Letter of Admission into the program|
|Step 2||Commencement of Regulatory Incubation Program||as detailed in Admission Letter|
|Step 3||Receipt of feedback from the RI Team||At the end of every quarter following commencement of the RI Program|
|Step 4||Receipt of guidance on applicable regulatory regime and regulatory requirements||By 10th month of admission|
|Step 5||Exit from the program with clear directives on next steps to take,||12th month of Admission except where an extension is granted.|
|Step 6||Commence operation as a registered entity or termination of activity where registration is not completed as directed.|
|Robo-Advisory Services – Released August 30, 2021||Registration Requirements for Robo Advisory Services|
|Digital Sub-Brokers – Released April 22, 2021||Registration Requirements for Digital Sub-Broker|
|Regulatory Incubation Guidelines – Released June 06, 2021||Important notes before completing the RI Application Form|
Registered FinTech Operators
|Crowdfunding||Robo Adviser||Digital Sub-Broker||Digital Investment (Fund/Portfolio) Manager|
|Obelix 4.1.1 Alternative Ltd||Wahed Ltd||Chaka Technologies Ltd||Cowrywise Financial Technology Ltd|
|PropCrowdy Ltd||Bamboo System Technology|
|Pennytree Business ltd||Treager Integrated Services Ltd|
Contact Innovation Office