Frequently Asked Questions: Securities and Exchange Commission Innovation Focus
It is the regulatory response to advancement in financial innovation
No. Rather it’s a concerted effort to support innovation and make it safe for investors, operators and the Capital Market in general
The SEC has created a Fintech and Innovation Office (FINO) to facilitate internal & external information dissemination, communication with innovators and provide guidance on regulatory requirements
It reviews submissions from Fintech firms and coordinates collaboration between operational departments of the SEC which supervise and monitor products and processes in the Capital Market
Yes the SEC has an engagement timetable (place link here) with various discovered Fintech Firms. This engagement timetable will be expanded as more firms are discovered
The SEC has inaugurated the Fintech Roadmap Committee in November 2018, comprising Fintech entrepreneurs, technology experts, Capital Market trade groups, financial sector regulators, banks, legal firms, innovation hubs and Fintech organizations
To produce a snapshot of the current status of Fintech developments in the Nigerian Capital Market and propose a holistic plan for facilitating & developing Fintech as a tool for deepening the Market
The Committee has produced a draft report, presently undergoing reviews.
The SEC has engaged over fifty (50) firms via its assessment form (place link here) on the SEC website and through formal meetings
Yes the SEC has engaged with innovation hubs in Abuja and Lagos and is in constant communication with them.
Yes a number of Fintech Firms have applied for permission to operate.
Two Fintech firms have been approved for registration by SEC Management
Some Rules are in the process of being amended to facilitate their registration
Before the end of the fourth quarter of 2019
The SEC will not close down any firm immediately it comes forward. Rather the firm will be assessed on its risk exposures and guided towards coming under SEC regulation. However, if its operations are too risky for investors, it will have to accept and operationalize SEC guidance on investor protection and market stability.
The length of time depends on the nature of product and whether or not the SEC has existing Rules or Guidelines to regulate them.