September 13, 2018

FinTech: Regulations on tech application in capital market underway — SEC boss


Ex Nigerian Securities and Exchange Commission boss, Mr. Mounir Gwarzo

By Peter Egwuatu

In its bid for a technology-driven capital market as well as investor-protection, the Securities and Exchange Commission, SEC, has said that the Commission would soon come out with regulations that would guide technologically driven products in the capital market.

This was disclosed by the Acting Director General of the SEC, Ms. Mary Uduk, during the presentation of a lecture by Mr. Ade Bajomo, Vice President, FinTech Association of Nigeria, titled ‘Market Impact of the FinTech Revolution’, in Abuja, yesterday.

Uduk who also announced Bajomo as Chairman of the Capital Market Committee on the Fintech Roadmap in the capital market, said the SEC 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.

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.

According to Uduk, “the Capital Market needs to create an enabling environment that is attractive enough for Fintechs to innovate as the Market should engage actively with the new trend in technology and provide the adequate regulatory framework for proper adoption of suitable technology and that is one of the reasons why we have invited FinTech here today for this presentation.”