Regulations to protect FinTech investors’ underway – SEC

The Securities and Exchange Commission (SEC), in its desire to transit towards a technology driven capital market has said it would soon roll out regulations that would guide investors of such products in the capital market Acting Director General, Ms.
Mary Uduk who made the disclosure at a lecture yesterday in Abuja said the Commission as the apex regulator of the Nigerian Capital market is interested in investments that Nigerians are making especially with the advent of digitalization.
“If we will regulate this market and understand what is happening we need our staff to understand the rudiments of FinTech.
Very soon the whole world will move to technology for regulation.
Other jurisdictions have already gone far into it with some of them already amending their rules in that direction.
“The International Organization of Securities Commissions (IOSCO) is on it and there is a lot on it already all over the world and we can’t be left behind.
We are very much interested in some of the most active areas of Fintech innovation like block chain technology, crypto currencies and how they affect investors” she said.
She stated that as regulators of the capital market, it is the responsibility of the SEC to find out how such investments are going on and if they meet set standards because when investors lose money they will come back to the SEC adding “That is why we are seeking to understand what FinTech is all about to enable us regulate the market properly.
While alluding to the growing influence of Fintechs in the capital market, Uduk, urged investors to take advantage of Fintech offerings in moving the Capital Market forward.
She equally emphasized the focus of the Commission on capacity building, knowledge sharing, advocacy and collaboration with relevant entities.
It will be recalled that Uduk recalled that during the last Capital Market Committee meeting in Lagos, the Committee agreed to set CMC to set up a Committee to draw a Fintech Adoption roadmap for the Capital Market.
This is even as the she announced Bajomo as Chair of the Capital Market Committee on Fintech Roadmap for Capital Markets in Nigeria, In his presentation, Executive Director Information Technology and Operations of Access Bank as well as Deputy President of FinTech Association of Nigeria (FinTechNGR), Mr.
Ade Bajomo expressed the need for regulators to understand what FinTech is all about as that is where the world is moving to now.
Bajomo said regulators need to know what to regulate, how to regulate it, protect investors as well as drive commerce as if they don’t regulate this properly, it could hinder the growth of Africa.
“We have to get into the digital agility and understand that the old way of doing things will not work in this digital age.
Whether we like it or not, people will adopt digitalization, it is just inevitable.
It is the simplicity that is driving this entire reforms.
Our markets have to reposition to provide the proper regulations to facilitate entry and exit by these people which will lead to raising of funds, bringing of new products and driving the FinTech revolution.
He also stated that the SEC needs to ensure there are proper regulations that would enhance cyber security as it is the single biggest threat to the FinTech revolution Financial Technology also known as FinTech describes a business that aims at providing financial services such as personal financial management, insurance, payment etc.
by making use of software and other modern technology.
In his remarks, President FinTechNGR, Dr.
Segun Aina said “FinTech has supported the banking industry tremendously and the capital market will also greatly benefit from it.
In every aspect of financial services, FinTech important and that is why we are driving the process in Nigeria”.

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