Nigerian Securities and Exchange Commission has started accepting applications for its Regulatory Incubation (RI) program for FinTech firms operating or seeking to operate in the Nigerian Capital Market.
The Regulatory Incubation was first discussed in a circular from Securities and Exchange Commission (SEC) in June 2021. Hitherto some fintech companies were unable to launch and operate in Nigeria because their proposed business models fell outside of the existing SEC regulations
So the Regulatory Incubation (RI) program is designed 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. The RI Program has thus been conceived as an interim measure to aid the evolution of effective regulation which accommodates the innovation by FinTechs without compromising market integrity and within limits that ensure investor protection.
The Regulatory Incubation will operate by admitting identified Fintech business models and processes in cohorts for a one-year period. Participation in the RI program will encompass an Initial Assessment Phase and the Regulatory Incubation Phase. 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.
A. Who can Apply
- Registered Capital Market Operators
- Unregistered Fintech innovators that require regulation
- Firms of all sizes
- Special interest in firms that want to enhance investor participation in the Nigeria Capital Market
B. Eligibility Requirements for Application to participate in RI
To apply to participate in the Regulatory Incubation Program, you must demonstrate that you meet our 5 eligibility criteria below:
Your innovation is:
- for application in the Nigeria Capital Market
- safe for investors
- a genuine innovation that introduces a new product/process to serve specific investor needs
- able to solves existing compliance or supervisory issues (optional)
- ready for testing
You are expected to provide as much information as possible about how you meet these criteria when submitting your application.
- If you’re not looking to test your proposition, you might want to apply for an engagement session here.
C. The following models are not expected to apply for Regulatory Incubation:
- Crowdfunding
- Robo Advisory/Digital Investment Advisory
- Sub-broker Serving Multiple brokers using a digital platform
For comprehensive guidance on how to apply for admission into the Regulatory Incubation Program, please click here.
The portal for submitting applications will receive applications from Cohort 001/23, from 28/04/2023 to 26/05/2023
