The Securities and Exchange Commission (SEC) has opened Regulatory Incubation (RI) programme for Fintech firms operating or seeking to operate in the country’s capital market.
In a circular by the Commission in Abuja on Sunday, the RI portal would be opened between April 28 and May 26 for registered capital market operators and unregistered Fintech innovators who required regulation.
“This is to inform you that the portal for submitting applications is now ready to receive applications from Cohort 001/23.
“Cohorts will be announced at specific times.
“The circular identifies those that can apply as registered Capital Market Operators, unregistered Fintech innovators that require regulation.
“Others are firms of all sizes and firms that want to enhance investor participation in the country’s capital market,” it said.
The SEC noted that companies that want to apply and participate in the RI Programme would meet five eligibility criteria.
The Commission listed the criteria to include safe for investors, genuine innovation that introduced a new product/process to serve specific investor needs and be able to solve existing compliance or supervisory issues.
“Please provide as much information as possible about how you meet these criteria when submitting your application.
“If you are looking to test your proposition, you may apply for an engagement session,” SEC said.
The circular said that fintechs in crowdfunding, robo advisory/digital investment advisory and sub-broker serving multiple brokers using a digital platform would not apply as they already had regulations.
The RI programme is designed to address the needs of new business models and processes that required regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.