Nigeria: SEC opens Regulatory Portal for Fintechs seeking to operate in Nigerian Capital Markets

The Nigerian Securities and Exchange Commission (SEC) announced it has opened the Regulatory Incubation (RI) program for FinTech firms operating or seeking to operate in the Nigerian Capital Market

The regulatory body said that the portal would be opened from the 28^th of April, 2023 to the 26^th of May, 2023.

They added that Unregistered Fintech innovators that require regulation are encouraged to apply.

Regulatory Incubation scheme

The Securities and Exchange Commission (SEC) said the move to open a portal comes from a 2021 agreement announcing the Regulatory Incubation (RI) program for FinTech firms, seeking to participate in Nigeria’s Capital Markets, they said:

• “Please refer to the Securities and Exchange Commission (SEC)circular of June 2021 announcing its Regulatory Incubation (RI) program for FinTech firms operating or seeking to operate in the Nigerian Capital Market.
• “ This is to inform you that the portal for submitting applications is now ready to receive applications from Cohort 001/23, from 28/04/2023 to 26/05/2023. Cohorts will be announced at specific times.

Who can Apply

1. Registered Capital Market Operators
2. Unregistered Fintech innovators that require regulation
3. Firms of all sizes
4. Special interest in firms that want to enhance investor participation in the Nigeria Capital Market

 Eligibility Requirements for Application to Participate in RI

The SEC noted that companies that want to apply and participate in the Regulatory Incubation Program, must demonstrate they meet the 5 eligibility criteria, which are:

1. For application in the Nigeria Capital Market.
2. Safe for investors.
3. A genuine innovation that introduces a new product/process to serve specific investor needs.
4. Able to solve existing compliance or supervisory issues (optional).
5. Ready for testing.

To not apply

The statement revealed that FinTechs in the areas of, Crowdfunding, Robo Advisory/Digital Investment Advisory and Sub-broker Serving Multiple brokers using a digital platform are urged not to apply, adding that there are already regulations for them and they should not apply for Regulatory Incubation.

For comprehensive guidance on how to apply for admission into the Regulatory Incubation Program, please click here.