‘Fintech will enable Capital Market Operations’

What were some of the issues discussed at the CMC?

The market was informed of the success recorded at the Lagos State Probate Registry and it was intimated of the need to extend it to Probate Registries across the Country.

Recall that the Commission had earlier required Capital Market Operators (CMOS) to register with their relevant trade groups, to ensure compliance to this directives, SEC also requires proof of registration with these trade groups as a perquisite for operators to carry out transactions or make any submission at the Commission.

The Commission noted the challenges posed to the market over the uncertainty around the collection of stamp duties between Federal Inland Revenue Service (FIRS) and NIPOST, we informed the market operators of the SEC and Capital Market Master Plan Implementation Council (CAMMIC) engagements with the office of the Vice President and the Federal Ministry of Finance to resolve this issue. We expect this to be resolved very soon as well as our request to exempt equities transactions from VAT payments.

The Commodities Trading Ecosystem Committee informed the meeting of the round roundtable on the Commodities Ecosystem with key stakeholders slated for October 3, 2019.The Committee also reported the commencement of a quarterly bulletin by the Commission focusing on issues on the Commodities Market. It further raised the collaboration of SEC and other relevant stakeholders to develop the certification frame work for collateral managers.

Secondly, The Financial Literacy Technical Committee reported on the success of the collaboration between the Capital Market Committee and the Education Research Development Council (NERDC).TWO weeks ago, a workshop was organized to infuse the earlier stand lone contentment into the curriculum of primary and Secondary Schools. The Committee also developed enlightenment video and publication to be disseminated via social media. Other market operators were also urged to develop same. On Non – Interest Finance Committee, we learnt of the on the ongoing conversation with the African Development Bank to issue Sukuk under an existing issuance programme. The Market was also informed of the existence of an Islamic Finance Forum portal where operators could visit to obtain necessary information on financial products. The Committee is also in discussion with the Debt Management office on the possibility of issuing short term Sharia compliant paper as part of the periodic Ni

Was there any update from the Multiple Subscription Committee?

The Multiple Subscription Committee informed the meeting that the Committee of heads of banking operations had agree to collaborate with the Commission to display banners in banking hall all over the country sensitizing the public on the regularization of multiple subscription of shares. Company secretaries of listed Companies also agree to display similar information on their website and offices. So far the regularisation exercise recoded the consolidation of 3.4 million units of shares.

Any other report?

The Identity Management Committee; gave update of it meeting with National Information Technology Development Agency (NITDA) on the implications of the Nigerian Data Protection Regulation on Capital Market Operations, the Committee also stated its plan to develop a standardise data form which seeks to consolidate registration and access to processes in the Capital Market by investors.

What were some of the resolutions taken at the meeting?

Some of the resolutions are: SEC to invite National Information Technology Development Agency (NITDA) to the next CMC meeting to make presentation on the impact of the Nigerian Data Protection Regulation on the Capital Market. The Commission is to engage CBN to include e-dividend Mandate Management System (EDMMS) charge in guideline for bank charges. Trade groups report to the Commission on the level of compliance by their respective members as to the directives that all CMOS must register with their respective trade groups.

Also, it was agreed that Brokers and registrars are to make available to the Committee on Multiple Subscription Committee on a periodic basis number of regularised accounts and the SEC to engage relevant stakeholders on e-dividend and multiple subscription account concerning the following: Ensuring that complete data are transferred amongst operators such as brokers, registrars and CSCS, Discouraging unclaimed dividend from building up from securities of listed companies and developing the modalities for validating register of members where the registrars are furnished with incomplete information such as missing account numbers.

Where are we now on Fintech?

You will also recall that the Commission had in November, 2018 constituted a Committee to develop a Fintech road map for the capital market committee; I am delighted to inform you that the road map was presented to the Capital Market Committee at this CMC. The report highlighted the current application of Fintech in the market, opportunities, challenges and recommendations.

The report will be made available on the Commission’s website for input, comments and given the importance of the recommendations of the Fintech road map Committee and the need for timely implementations, the Commission will be setting up a Fintech road map working group to drive the implementation. This new Committee will be headed by Ade Bajomo.

We also used the platform of the meeting to reiterate our support for Fintech in the Capital Market. The Committee was briefed of the effort to engage and guide Fintech startups that seeks to operate in the Nigerian Capital Market. Capital Market operators were therefore urged to embrace Fintech not as a competitor but as enablers to their existing operations and processes.

What is SEC doing in regulating the existing fintech companies?

The SEC has been engaging the Fintech community, we set up a FinTech committee to come up with a road map for the Nigerian capital market in general, that report and the road map was presented yesterday at the CMC meeting, secondly in the Commission there is a Fintech division that engages with the Fintech community, we also have a form on our website to invite “would be” Fintech organizations that want to operate in the capital market to complete those forms to enable us understand the area that they are interested in and about 42 or more completed the form and we have been engaging them.

Some of them are ripe to be registered and admitted as full capital market operators. We also are building capacity as a Commission to understand Fintech. Fintech has come to stay, we are embracing FinTech even in IOSCO Fintech is discussed.