The Securities and Exchange Commission (SEC) has announced plans to launch a regulatory incubation (RI) programme for fintechs operating or seeking to operate in the Nigerian capital market.
A circular recently published on the commission’s website said that the initiative will be launched in the third quarter of 2021 and will operate by admitting identified fintech business models and processes in cohorts for a one-year period.
The Regulatory Incubation programme is made up of two phases of participation – an initial assessment phase and the regulatory incubation phase.
The SEC said that the categories to be admitted into each cohort will be determined based on submissions received through the fintech assessment form and communicated ahead of each take-off date.
The circular read: “Review of completed Fintech Assessment Forms will continue on an ongoing basis. FinTechs who consider that there is no specific regulation governing their business models or who require clarity on the appropriate regulatory regime for seeking the authorisation of the Commission, are encouraged to complete the Fintech Assessment Form.”
The SEC added that it designed the Readiness Incubation programme to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.