The Securities and Exchange Commission has said that the safety of investors and their investments in the capital market is one of its cardinal objectives in rolling out its Regulatory Incubation Programme for Fintechs.
This was stated by Director, Registration, Exchanges, Market Infrastructure and Innovation, Mr. Abdulkadir Abbas during an interview in Abuja.
Abbas stated that the regulatory incubation program is a program that is designed as an interim measure to actually facilitate genuine regulation of Fintechs activities that will conform to the capital market issues.
He said the idea of coming up with this programme, which is like a sandbox, is to be able to come and test innovative ideas as stated in the SEC guidelines adding that the incubation period would be open for one year.
According to Abbas, “It is just for testing, it will not be approved at that stage but all Fintech ideas that conforms with investment activities are defined in Investment and Securities Act 2007 can be tested under that kind of program. As we informed the market, there is going to be an initial assessment before it can be on-boarded into the regulatory incubation program.
The SEC Director said the Commission through the RI, is providing an avenue where fintechs can test their ideas without affecting the market integrity adding that one of the other objectives is to be able to create an opportunity to solve an existing problem in the market.
Abbas stated that the takeoff has been very encouraging with the SEC gaining traction with market participants showing more interest and have commenced the first stage which is the initial fintech assessment route.
He disclosed that before the take-off of the RI, the SEC has been engaging with various fintech applicants some of whom are existing capital market operators.
Speaking on the legitimacy criteria, Abbass said, “Right, there are five legitimacy criteria. First of all, you must have a kind of idea that will really bring a solution to an existing problem. That is one of the legitimacy criteria. Second, as a fintech company you must be able to really fill the initial assessment form and demonstrate to the commission that your idea or proposal or solution, has conformed to the investment activity that has been under the scope of the ISA which is our own purview.
Fintech: Investor safety our cardinal objective – SEC
