The Securities and Exchange Commission (SEC) has opened the application portal for its regulatory incubation (RI) programme for fintech firms operating or seeking to operate in the Nigerian capital market.
The commission, in a recently released circular, said the portal opened April 28, 2023 and will close by May 26, 2023.
Registered capital market operators as well as unregistered fintech innovators that require regulation are encouraged to apply, SEC added.
SEC said the decision to open a portal stems from a 2021 circular where it announced the imminent roll-out of the RI program for fintechs operating or seeking to operate in the Nigerian capital market.
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“Please refer to the Securities and Exchange Commission (SEC) circular of June 2021 announcing its regulatory incubation (RI) programme for fintech firms operating or seeking to operate in the Nigerian capital market,” the circular reads.
“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.”
The circular identified suitable applicants to be “registered capital market operators, unregistered fintech innovators that require regulation, firms of all sizes and firms that want to enhance investor participation in the Nigerian capital market”.
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The commission noted that companies that are interested in applying and participating in the RI program must demonstrate they meet the five eligibility criteria.
According to the organisation, applicants must show that their innovation is for application in the Nigeria capital market, safe for investors, introduces a new product/process to serve specific investor needs, able to solve existing compliance or supervisory issues (optional), and ready for testing.
“Please provide as much information as possible about how you meet these criteria when submitting your application. If you are looking to test your proposition, you may apply for an engagement session,” SEC said.
The commission further 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, citing that there are existing “regulations for them”.
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“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 commission said.
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