SEC DG urges capital market stakeholders to embrace innovation
The director general of the Securities and Exchange Commission, Dr. Emomotimi Agama, has urged stakeholders in the capital market to embrace innovation as a catalyst for growth, increased efficiency, heightened transparency and resilience.
Agama stated this as the keynote speaker at the 2024 Capital Market Solicitors Association Annual Business Summit in Lagos recently, with the theme, “Revolutionising the Nigerian Capital Market through Innovative Financial
Instruments for Sustainable Development.”
He disclosed that the SEC was aware of the new financial products and services that are emerging due to technology and was committed to adapting its regulations to address these innovations.
“The commission has a three-pronged approach to regulating innovation: safety, market deepening and solutions to problems. This has always, and will continue to help create a more efficient and reliable capital market ecosystem.
“In the efforts to support the innovation and growth in the market, the SEC had established a programme of assessment called Regulatory Incubation to help new FinTech businesses. The programme allows them to operate for one year within a highly fortified and limited regulatory perimeter while the SEC develops applicable rules that address these innovative technologies. The incubation programme helps to ensure investor protection and market stability while fostering financial technology advancements in the Nigerian capital market,” he stated.
The director-general reiterated that one of the cardinal objectives of the
Revised Capital Market Master Plan (CMMP 2021-2025) was to leverage technology and innovation to expand the depth and breadth of the Nigerian capital market to enable it contribute significantly to national economic development.
“In order to facilitate the success of the RCMMP, a major task before the Securities and Exchange Commission is creating an enabling regulatory and supervisory environment for innovation to thrive as means of deepening the Nigerian capital market in terms of new products and processes,” he added.