‘No unregulated entity will participate in capital market activities’
The Securities and Exchange Commission (SEC) has assured that it would continue to engage and support operators in the financial technology (Fintech) space to ensure that no unregulated entity participates in the market.
The Director-General of the commission, Lamido Sanusi, said operating unregistered firms undermine investors’ protection.
At the post-Capital Market Committee Meeting press briefing, Yuguda said the commission would support operators in the industry as well as ensure that they operate lawfully.
SEC, in a bid to protect investors from fraudulent practices, released a circular warning the investing public to desist from patronising unregistered online investment and trading platforms facilitating access securities listed in foreign markets.
“The attention of the SEC has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public to securities of foreign companies listed on securities exchanges registered in other jurisdictions,” said the circular.
Yuguda said: “We do not want any unregulated entity to participate in the market because if there are issues it becomes very difficult to resolve. It became imperative for the commission to issue this notice for the protection of investors and preserve the sanctity of the Nigerian capital market as only registered capital market operators are permitted to intermediate in the market through approved channels.
“The commission recognises the impact of FinTechs on capital market activities and wishes to assure the public that we remain accommodative of this development. We shall continue to engage players and support them to operate lawfully. We aim to ensure the delivery of safe products and services without stifling innovation, I, therefore, encourage FinTech firms to approach the commission for due registration and desist from operating illegally.
“In the same vein, registered capital market operators (CMOs) are advised to refrain from providing any form of support to unregistered entities operating unlawfully within our market, as such action would not be condoned. We urge CMOs to improve on their level of compliance, timeliness and correctness of disclosures and other filings made to the Commission”.