The Securities and Exchange Commission (SEC) is the main body that regulates securities in Nigeria. It was empow- ered by the Investment and Securities Act (ISA) to act as the apex regulatory organization for the Nigerian capital market to carry out various functions and exercise all the powers prescribed in the ISA.
In its bid to regulate Fintech providers offering services in the investment and securities industry, the SEC introduced the Regulatory Incubation Program. The Regulatory Incubation (RI) Program is designed to address the needs of new business models and processes that require regulatory authorization to continue carry out full or ancillary technolo- gy-driven Capital Market activities. The RI Program was conceived as an interim measure to aid the evolution of effec- tive regulation which accommodates the innovation by Fin Techs without compromising market integrity and investor protection.
The RI Program was scheduled to be launched in the third quarter of 2021 and will operate by admitting identified Fin- tech business models and processes in cohorts for a one-year period. The RI program is yet to launch but its expected to launch anytime soon. Participation in the program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase. The categories to be admitted into each cohort will be determined based on submissions received through the FinTech Assessment Form and communicated ahead of each take-off date.