The Securities and Exchange Commission (SEC) has assured stakeholders in the fintech space that it is committed to ensuring transparency and integrity in the regulation of the space.
The Commission said it had ensured a level playing field for all applicants.
The Director General of the SEC, Dr Emomotimi Agama, said this on Monday during a meeting with Regulatory Incubation Program and Fast Track Regulatory Incubation Program applicants.
The SEC CEO said the Commission understands the anxiety and the need to be regulated, but added that it must be very careful even in its desire to be inclusive.
According to him, “the registration process is a very technical process because registration is the hallmark of regulation. This goes beyond onboarding and registration; it requires monitoring, education and monitoring, and all of this is ongoing. This journey is a new journey that we have never experienced before. As we continue, we will find challenges that we will need to solve, because all challenges can be solved.
“I am here to allay the fears expressed; we have ensured a level playing field, but as a government institution we have to take things in context when doing this. Groups that have been admitted to ARIP and RI are beginning to realize that we have begun to require information, operational updates, and more regulatory requirements, consistent with the concept of an incubation program. regulation, or a sandbox as some other institutions call it. In doing so, we study what they do and the risk they pose to investors and themselves.
“Not only did we do that, but we also issued new regulations to the public, which we call an exposure document. If you look at it, it’s an improved version of our previous regulations, and the process of developing the regulations requires that we get your views as stakeholders before it becomes a regulation.
Agama said stakeholder inputs are important because regulators cannot claim to know everything, adding that the rules would be amended to include all valid points to make it a comprehensive document.
He further revealed that the Commission increased the space to include more regulations to accommodate more individuals, more institutions and more functions, as accommodation is the government’s position regarding space.
“We’re trying to ensure that ultimately, as a country, we come out ahead in regulating this space. Without a doubt, this space is the future, and for us Nigerians, we have embraced it.
“With the population that we have, with over 70 percent interest in this space, we have to live up to what’s being advertised, but we have to do it intellectually, and that’s why we’re hiring you.”
The DG SEC stressed that the Commission does not delay in its processes but must ensure that everything is in order to enable fairness in all declarations made.
Agama admitted that it is difficult to say that all those who applied will be registered as certainly not all will meet the requirements, but assured that the Commission would continue to provide clarification on some thorny points to help in the process.
“We are all on this journey together and we all have to succeed in this journey. I have always encouraged participants to come together and collaborate so that the outcome is something 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 limitless opportunities that exist. International partners can only intervene in the local space if we succeed.
“In the coming year, we will move forward more quickly with delivery and announcements, having learned lessons from this process. A new law has been adopted and is in the process of obtaining presidential approval. This law contains all the legally required ingredients to properly regulate this space and guide operators. All these efforts are made by the SEC to be as friendly as possible, protect the interests of the ecosystem and protect the interests of investors.
“As we try to build this system, we are building a new economy that will benefit everyone, and we cannot take advantage of this opportunity. If we miss it, the international partners will not come, but if we succeed, we will be the darlings of the world.
The SEC boss assured that every application sent to the SEC has been reviewed or is being reviewed to ensure that ultimately, whatever decision is made, it meets international best practices as well as ‘to the interests of Nigeria.
“The process of assessing a fit and competent person is laborious, but we are aware that the International Organization of Securities Commissions is working hard to introduce more regulations between member states to mitigate the risks that the new ecosystem weighs on investors. We are aligned with these regulations; therefore, our regulations will certainly be as dynamic as the new advancements we are trying to achieve. The Financial Action Task Force is also interested in what we do.
“As 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 Advisor, the Central Bank of Nigeria, the Federal Inland Revenue Service, the National Information Technology Development Agency and all other interested stakeholders so that everything we bring as our regulations are accepted by all, thus making members’ operations in this space smooth and transparent.
The SEC boss therefore sought cooperation and understanding from all stakeholders in the Commission’s efforts to create a formidable ecosystem and protect the sovereignty of the nation. We remain excited about the limitless opportunities that exist. International partners can only intervene in the local space if we succeed.
“We have a responsibility to protect our nation and I need your cooperation. We are committed to making a difference; let us work together to create a transparent and more formidable ecosystem with the aim of fulfilling the aspirations of President Tinubu so that the youth can benefit,” he added.
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