SEC used N8bn of N9bn revenue to service staff — SENATE

By Peter Egwuatu

The Securities and Exchange Commission, SEC has identified technology innovations  as a means  to enhance the efficiency and transparency of capital markets and enable financial intermediation.

Disclosing this while speaking at the Nigerian Exchange Limited, NGX, Capital Market Conference in Abuja yesterday, the Director General of the Commission, Mr. Lamido Yuguda, noted  that the capital market of every nation plays a strategic role, not only in allocating scarce resources, but in harnessing the  huge investment opportunities in agriculture, infrastructure, oil and gas, natural resources as well as in other sectors of the economy.

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Yuguda said that the International Organization for Securities Commission (IOSCO) acknowledges that the use of technological innovations by market operators could potentially create significant efficiencies and benefits for firms and investors, including increasing execution speed and reducing the cost of investment services.  

According to him, IOSCO also notes that this use may create or amplify certain risks which could potentially have an impact on the efficiency of financial markets, resulting in consumer harm.  

He stated: “As the apex body responsible for regulating and developing the Nigerian capital market, the SEC has strengthened market rules and regulations with the introduction of responsive rules and the amendment of existing ones to mitigate some of the risks posed by technological innovations.  

“With a three-pronged objective to regulating innovations hinged on safety, market deepening, and solution to problems, our regulations, are enabling, accommodating and futuristic.    They also ensure adherence to our core regulatory mandates of investor protection and market development.    

“We have also committed resources to enhancing our processes through fortification of our ICT infrastructure in the areas of Registration, Returns Rendition and Analytics. Given that the  advent of Financial Technology has changed how traditional capital market activities are being conducted, the SEC has embraced FinTech, and as such, has redefined its regulatory landscape to accommodate fintech related capital market activities.

“To this end, we have developed rules on crowdfunding, Robo-advisory and Digital Sub-broking. In addition, we have developed a ’Regulatory incubation framework, which will be implemented in due course.

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