SEC Nigeria Announces The Introduction of The Interpretive Guidance Note

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Thursday, November 15, 2018 / 05:53 PM / SEC


The public and all capital market stakeholders are informed of the introduction of the Commission’s Interpretive Guidance Note (IGN). The IGN would assist in the understanding of; provide guidance in compliance with the Investment Securities Act (ISA), SEC Rules and Regulations and other issues within the Commission’s regulatory purview. 

The Commission is the apex regulatory body of the Nigerian Capital Market.  As the apex regulator, it is saddled with the regulation of the market to ensure the protection of investors, maintain fair, efficient and transparent market and reduction of systemic risk. 

The Commission in carrying out these functions formulates Rules and Regulations to regulate the Market and its players, to ensure transparency, consistency and fairness, amongst others. To enhance its regulatory function the Commission is commencing the issuance of Interpretive Guidance Notes (IGN) to aid understanding of and provide guidance in the course of compliance with the relevant SEC Rules and Regulations.

Purpose of Interpretive Guidance Notes (IGN)

The Commission would through this IGN:

  1. Expand, clarify, explain or simplify the provision of any law or regulation issued by it or within its purview; and
  2. Comment on topics of general interest to the investing public and explain the principles driving the development of regulation to ensure better understanding and uniform applicability of the regulation.


Benefits of The IGN

It is expected that this will help the Commission to:

  1. Drive transparency, consistency and fairness in the regulation of the Capital Market;
  2. Ensure conformity with global standards in the market and thereby enhance its global competitiveness;
  3. Shorten the timeframe of security issuance process due to clarity and  improve quality of output from operators;
  4. Create a transparent capital market reputed for full disclosure;
  5. Increase knowledge of complex financial products and stimulate products issuance;
  6. Support and enhance regulation in the market.

Scope of The IGN

The IGN, which will be publicized on the Commission’s website, would cover      provisions of the following:

  • The Investments and Securities Act (ISA) 2007;
  • The Commission’s Rules and Regulations made pursuant to the Act, consolidated in 2013, and the various amendments made thereto;
  • The Code of Corporate Governance;
  • Topical, new, unique and/or complex, issues in the capital market, amongst others.


Who Can Request/Originate Issues For IGN

  • The Commission,
  • Investors,
  • Capital Market Operators,
  • Trade Groups, amongst others.

 Proshare Nigeria Pvt. Ltd.

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