Monday, August 26, 2019 / 01.00PM / Nifemi Taiyese and Bukola Akinyele for Proshare WebTV / Header Image Credit: WebTV
Regulatory institution, the Securities and Exchange Commission, is set to implement the Roadmap for the Fintech Industry, as it concerns the capital market.
This was disclosed by the Acting Director-General of the Commission, Ms Mary Uduk, at the Q2, 2019 Capital Market Committee briefing for capital market correspondents in Lagos.
Uduk said the Working Group to drive the implementation of the Fintech Roadmap will be chaired by Mr Adeolu Bajomo, the Vice-President of the Fintech Association of Nigeria.
She reiterated the support of SEC Nigeria to the development of a robust Fintech Industry will be beneficial to the finance ecosystem.
Speaking further she encouraged Capital Market Operators to embrace Fintech as an enabler and not competitor to their business.
Uduk also said that SEC is building capacity as a Commission to effectively interact with the Fintech sector.
According to her SEC will continue to engage the Fintech Association of Nigeria and all key stakeholders to get their inputs, as the roadmap implementation phase takes effect.
She also stated that considerable progress has been made by SEC in the implementation of its consolidation of multiple shareholder accounts and electronic Dividend Mandate Management System (e-DMMS) as so far about 3.4bn shares have been consolidated.
Both measures were introduced as part of checking the growth and possibly eliminating the unclaimed dividend menace in the nationâ€™s capital market.
Giving an update on the activities of the Capital Market Masterplan Implementation Committee, CAMIC the Acting Director-General said there has been increased momentum in the area of driving the 10-year plan that is designed to reposition the Nigerian capital market.
At the moment she noted that SEC Nigeria and CAMIC has been engaging the Office of the Vice President and the Federal Ministry of Finance, on the prospects of exempting equities transactions from VAT payments.
For the Commodities market, she said the Commodities Trading Ecosystem is planning a roundtable with stakeholders, which is slated for October 3rd, 2019.
Also, the CMC announced that SEC Nigeria will be releasing quarterly bulletin that focuses on the activities in the commodities market.
Under the Non-Interest Finance space, the Ag DG of SEC Nigeria hinted that the African Development Bank, AfDB is planning an issuance under the existing Sukuk Bond programme.
To strengthen the regulatory process in the capital market, Mary Uduk also informed the market correspondents that SEC Nigeria recently signed a Memorandum of Understanding, MOU with the Nigerian Financial Intelligence Unit , NFIU.
The MOU will help to curb and combat terrorist financing, money laundering and fraud in the capital market.
She listed the following as some of the key resolutions at the end of the Q2, 2019 CMC meeting;
With the new board constituted and Mr Olufemi Lijadu as Chairman, the Acting Director General of SEC Nigeria, assured correspondents that there will be effective and robust market-wider regulation that will have a positive effect on the economy.
Fielding questions from correspondents Ms Uduk said that the rules on cross-border listings has been harmonized, in order to ensure that the regulations across African borders are aligned for CMOs to be able to raise funds in the region.
On States accessing the market to raise funds, she welcomed the development and believed that it will allow the sub-national governments to be more accountable and transparent, in their quest to raise long-term funds.
The Acting Director General also described the conversion of the FMDQ OTC to a full exchange as a welcome development to the capital market, that will lead to its further deepening and strengthening.
The Acting Executive Commissioner, Corporate Services, SEC Nigeria Mr. Henry Roland responding to the question on E-Dividend mandate, said about 2.7m accounts have been captured so far.