SEC vows to enforce fintech regulations to protect investors
The Securities and Exchange Commission (SEC) is dedicated to protecting investors’ funds in light of the increasing role of fintech in Nigeria’s financial sector. According to a recent statement by SEC, Director-General Dr. Emomotimi Agama highlighted this commitment at a capacity-building session for financial journalists in Abuja.
Dr. Agama assured stakeholders that SEC would enforce regulations within the fintech space to prevent fund mismanagement and ensure compliance with capital market rules, particularly regarding fundraising. He stressed the importance of creating a regulatory environment that fosters technological innovation for Nigeria’s financial advancement and urged fintech operators to adhere to market rules.
Despite the challenges presented by new technologies, Hasfat Rufai, Director of Registration, Exchanges, and Market Infrastructure at SEC, reassured participants that the commission would uphold investor protection. Rufai acknowledged the impact of digital platforms, cryptocurrencies, and fintech startups on investment trends in Nigeria, urging investors to embrace technology and make informed decisions.
During the event, speakers discussed the future of investment in Nigeria, highlighting the role of fintech in standardizing the commodities market. Abdulrahman Abubakar emphasized fintech’s contribution to linking storage facilities with exchanges electronically, improving market transparency and operational efficiency.
To enhance oversight of the financial market, SEC has partnered with the Toronto Centre to improve its Risk-Based Supervision regime. This initiative aims to strengthen the Commission’s ability to supervise market infrastructure effectively, providing valuable insights to refine supervisory capabilities and adapt to emerging fintech trends.
As the market continues to evolve, SEC is committed to enhancing its regulatory approach to keep pace with industry dynamics. The collaboration with the Toronto Centre underscores SEC’s dedication to safeguarding investors’ interests and ensuring a resilient financial market.
