SEC Mulls Regulatory Framework on FinTech

• SEC Mulls Regulatory Framework on FinTech

Securities and Exchange Commission (SEC) would soon roll out a regulatory framework for financial technology (FinTech) products in order to protect the general investing public.

Acting Director-General, Securities and Exchange Commission (SEC), Ms Mary Uduk, said the apex capital market regulator would seek a balance between transition to a technology-driven capital market and protection of investors.

Uduk said the Commission is interested in investments that Nigerians are making especially with the advent of digitalisation.

“The International Organisation 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,” Uduk said.

She said 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.

According to her, 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.

Uduk recalled that during the last Capital Market Committee meeting in Lagos, the Committee agreed to set up a committee to draw a Fintech adoption roadmap for the capital market.

She noted the growing influence of Fintechs adding that the capital market needs to take advantage of Fintech offerings in moving forward.