The Securities and Exchange Commission (SEC) has assured stakeholders in the fintech space that the Commission is committed to ensuring transparency and integrity in the regulation of the space.
The Commission said it has provided a level playing field to all applicants.
The Director General of the SEC, Dr. Emomotimi Agama, stated this on Monday during a meeting with Regulatory Incubation and Accelerated Regulatory Incubation Programme applicants.
The SEC DG stated that the Commission understands the anxiety and the need to be regulated but added that the Commission has to be very careful even in its desire to be inclusive.
According to him, “The process of registration is a very technical process because registration is the hallmark of regulation. It goes beyond onboarding and registering; it requires monitoring, education, and surveillance, and all of these are continuous. This journey is a new one that we have not gone through before. As we continue, we will find challenges that we need to solve because every challenge is solvable.
“I am here to assuage fears being exhibited; we have provided a level playing field, but as a government institution, we must take things into context while doing this. The groups that were admitted into the ARIP and RI are beginning to see that we have started demanding some information, operational updates, and more regulatory requirements in line with the concept of a Regulation Incubation Programme, or a Sandbox as some other institutions call it. In doing this, we are understudying what they are doing and the risk that they pose to investors and to themselves.
“We have not only done that, but we have also issued new regulations to the public, which we call an exposure document. If you look at it, it is an upgraded version of our earlier regulations, and the regulation-making process demands that we get your views as stakeholders before it becomes a regulation.”
Agama stated that the inputs of stakeholders are important as regulators cannot claim to know everything, adding that the rules would be amended to include all valid points to make it an all-inclusive document.
He further disclosed that the Commission has increased the space to include more regulations to accommodate more individuals, more institutions, and more functions because accommodation is the stance of the government regarding the space.
“We are trying to ensure that, at the end of the day, as a country, we will stand out in the regulation of this space. Beyond any doubt, this space is the future, and for us as Nigerians, we have embraced it.
“With the population we have, with over 70 per cent interested in this space, we must live up to the billing, but we must do it intellectually, and that is why we are engaging you.”
The SEC DG emphasised that the Commission is not slow in its processes but that it has to be sure everything is in order to enable fairness in any pronouncements made.
Agama admitted that it is difficult to say all who have applied will be registered because certainly not all will meet the requirements, but assured that the Commission will keep providing clarity to some knotty areas to assist in the process.
“We are all on this journey together, and we all must succeed in the journey. I have always encouraged participants to come together and collaborate so that the result will be what we are all proud of. As an ecosystem, we all have a responsibility to build an ecosystem that we will all remain proud of. We remain excited about the boundless opportunities that exist. International partners can only come into the local space if we get this right.
“In the coming year, we will move faster in delivery and announcements, having learnt from this process. A new law has been passed and is in the process of obtaining presidential assent. That law is replete with all of the ingredients legally required to properly regulate this space and give guidance to operators. All of these are efforts by the SEC to be as friendly as possible, protect the interest of the ecosystem, and protect the interest of investors.
“As we try to build this system, we are building a new economy that will be beneficial to all, and we cannot toil with that opportunity. If we miss it, international partners will not come, but if we make it, we will be a darling of the world.”
The SEC boss assured that every application sent to the SEC has been reviewed or is being reviewed to ensure that, at the end of the day, whatever decision is taken meets international best practices as well as the interests of Nigeria.
“The process of reviewing a fit and proper person is laborious, but we are aware that the International Organisation of Securities Commissions is working hard to introduce more regulations among member states in order to mitigate the risks that the new ecosystem poses to investors. We are aligned to those regulations; hence, our regulations will certainly be as dynamic as the new progress that we try to achieve. The Financial Action Task Force is also interested in what we are doing.
“Being an interested party, we must protect our nation. We work hand in hand with the Nigerian Financial Intelligence Unit, the Office of the National Security Adviser, the Central Bank of Nigeria, the Federal Inland Revenue Service, the National Information Technology Development Agency, and all other interested stakeholders in order that whatever we bring out as our regulation is accepted by all, thereby making the operations of members in this space smooth and seamless.”
The SEC boss therefore solicited the cooperation and understanding of all stakeholders in the Commission’s drive to create a formidable ecosystem as well as protect the nation’s sovereignty. We remain excited about the boundless opportunities that exist. International partners can only come into the local space if we get this right.
“We have a responsibility to protect our nation, and I crave your cooperation. We are committed to making a difference; let us work together to create a transparent, more formidable ecosystem in a bid to fulfil the aspirations of President Tinubu so that the youths can benefit from this,” he added.
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