SEC to constitute market wide committee on Fintech

The Securities and Exchange Commission (SEC) says a Capital market wide committee will be established to drive the guidelines and framework for the Fintech Industry in Nigeria. 

Ms. Mary Uduk, Acting Director-General, SEC, disclosed this as one of the key resolutions of the Q2, 2018 Capital Market Committee meeting held on Thursday in Lagos.

Uduk, who briefed Capital Market Correspondents on the key resolutions from the Q2, 2018  Post-CMC, said the committee will provide guidance on the best approach to the Fintech ecosystem in the country.

She mentioned that the CMC agreed that all Trade Group  Associations should register with SEC immediately, while Capital Market Operators (CMOs) are expected to register with their respective Trade Group Associations on or before December 31, 2018.  On the minimum operating standards, Ms Uduk said SEC Nigeria will work with Trade Group Associations to implement the CMC Committee’s recommendations.

In the area of the annual reports and accounts, the CMC agreed that the current pilot exercise of electronic distribution by Public Companies should continue, while efforts are made to enlighten shareholders and obtain their relevant e-mail addresses.

Addressing the multiple subscription initiative issues, she said the regularization of shares purchased with multiple identities in the country, will run until December 31, 2018.

For achievements in the capital market for the quarter in review, the Acting DG, SEC Nigeria listed the following: Aggressive use of various social media platforms to boost financial literacy campaigns such as the creation and deployment of a one (1) minute Financial Literacy video on YouTube; The renovation of five (5) warehouses by the Nigerian Commodities Exchange (NCX) in preparation for commodities trading.

Conclusion of about 30 cases at the Investment and Securities Tribunal (IST) from backlog of over 50 cases; Commencement of modalities to introduce the Investments and Securities Tribunal Law Reports. Implementation of the Recommendations of the Commodities Trading Ecosystem in phases, from 2018 to 2025 Increase in the number of shareholders who have mandated their accounts for E-Dividend payments to 2.55million.

Responding to the question on the developments around the rules for crowd-funding, she stated that the proposed amendment of the Investments Securities Act, has provisions on it.  For the Demutualization bill, the SEC  Nigeria Acting DG said the National Assembly had passed it awaiting the assent of the President.

On the listing of Companies like MTN, she reassured the market that SEC Nigeria was ready with the processes that will create an enabling environment for the process.  Giving updates on the Capital market studies curriculum, the SEC Nigeria boss said in collaboration with the National Education Research Development Council (NERDC) and the Chartered Institute of Stockbrokers, remarkable progress has been made for its introduction in secondary schools.