Tech Regulations & Govt | |
Tech Regulations & Govt | |
1395 VIEWS | |
![]() |
Sunday, December 20, 2020 / 06.57AM / By Proshare Tech/ Header Image Credit: Ecographics/Chaka/SEC
In a swift response to the
Saturday
afternoon public notice /release by the Securities
and Exchange Commission (SEC) indicating that the Investment and Securities
Tribunal (IST) had granted an interim order to restrict Chaka from advertising
and offering for sale, shares, stock or other securities of NSE-listed
companies; the company through Tosin Osibodu, the Co-founder
& CEO, Chaka Technologies issued an email titled "Regulatory
Update" to customers/investors using its
platform to appraise them of the situation and the security of
their funds.
Recall that SEC informed the market that the Investments and Securities
Tribunal (IST) on Thursday 17th December 2020, made interim Orders restraining
Chaka Technologies Limited, and its promoters from advertising or offering for
sale shares, stock or other securities of companies or other entities on all
Chaka platforms, pursuant to an application by the SEC had filed, informing the
Tribunal that the Defendants (Chaka) were engaged in investment
activities, including providing a platform for the purchase of shares in
foreign companies such as Google, Amazon and Alibaba.
This development has already awoken the market and fintech ecosystem as to its
implications for understanding how well regulators seek to build a bridge
between tech adoption and regulations; especially given the good intentions
covered in the SEC facilitated #fintech Roadmap Committee of The Nigerian
Capital Market report of August 30, 2019 titled The Future of Fintech in
Nigeria.
It
appears from Chaka's mail to customers: it is seeking an engagement that would
offer clarity on how and what trading platforms and Apps can work with and
within the Nigerian investment space. This, analysts spoken to consider is
about time. Indeed, we recall that some of these issues were underscored in
Proshare's September 02, 2020 online trading report titled Online Trading Ranking Report 2020 - Trading in a
Period of a Virus; Building Good Habits.
In the mail to customers, Chaka Technologies Limited explained their
understanding of developments, viz:
"We only learned about SEC's position today and while
we await receiving the formal order from SEC, please note that your investments
were placed by a duly licensed entity and remain safe through Citi Investments
(using the Chaka platform), and will continue to be custodied by a
SEC-regulated broker.
Since we began our journey in 2019, we have been
transparent about our regulatory status, leveraging strategic partnerships with
registered brokers in the U.S and in Nigeria, specifically Citi Investment Capital
Ltd, which is regulated by the SEC. Our commitment to investor education,
trust, and transparency remain a top priority.
We would like to state that Citi Investment Capital is
fully compliant with the commission's regulations as all local equities are
offered through a locally licensed brokerage firm, registered with the Nigerian
Stock Exchange (NSE), Central Securities Clearing System (CSCS), and regulated
by Nigeria's Securities and Exchanges Commission (SEC).
Following the SEC statement, our legal and operations
teams are working to accelerate a resolution. Further updates will be provided
by Monday."
The statement, in appreciation of the need to manage customer concerns
indicated that the firm has activated its support team where customers can
reach out to them. The support team can be reached on Telegram, via email support@chaka.ng
or via calls to their customer care hotline: +234 701 1204 586.
NB: Chaka's regulatory status can be found at chaka.ng/disclosures.
Related
to Investment Fintech
1.
The Investments and Securities
Tribunal Restrains Unregistered Fintech Company from Stock Trading - Dec 19, 2020
2.
SEC
Partners DFID, FCA To Develop Nigeria's Fintech Industry - Feb 12, 2020
3.
SEC,
CBN To Support Nigerian Fintech And Broaden Financial Inclusion - Oct 30, 2019
4.
Nigeria
Fintech Week: SEC Nigeria To Launch Fintech Roadmap - Oct 28, 2019
5.
SEC
Publishes Report Of The FinTech Roadmap Committee Of The Nigerian Capital
Market - Aug 30, 2019
6.
SEC
To Implement Fintech Roadmap For The Nigerian Capital Market - Aug 26, 2019
7.
SEC
Nigeria CMC Inaugurates FinTech Roadmap Committee - Nov 15, 2018
8.
SEC
Sets Up Special Committee On Fintech For Capital Markets - Sep 12, 2018
9.
SEC
and FintechNGR Advances Partnership, Set up Committee on Fintech Roadmap in
Capital Market - Aug 14,
2018
10. SEC
Malaysia And ASIC Sign Innovation Cooperation Agreement To Establish Fintech
Bridge - Jun 28, 2017
11.
About Chaka Technologies
Limited
Online Trading Reports & Fintech RoadMap
1.
The Future of Fintech in
Nigeria: The #fintech Roadmap Committee of The Nigerian Capital Market by SEC Nigeria- Aug 30, 2019
2. Full PDF Report: Online Trading
Ranking Report 2020 - Trading in a Period of a Virus; Building Good
Habits - Sep 02, 2020
3. News: Online
Trading Ranking Report 2020 - Trading in a Period of a Virus; Building Good
Habits - Sept 02, 2020
4. Online
Trading Ranking Report 2020: Review of Previous Ranking Reports - Sept 05, 2020
5. Online
Trading Ranking Report 2020: The Market - A Hawk's View - Sept 04, 2020
6. Online Trading
Ranking Report 2019 - Refining The User Experience; Trends In Digital
Trading
7. Nigerian Online
Trading Portals Ranking Report 2018
8. Nigerian Capital
Market and FX Online Trading Portals Ranking Report H2 2017
9. The Nigerian
Capital Market Online Trading Portals Ranking Report H1 2017
10. The Nigerian Online Trading Report 2016
Related
to Tech Regulations & Govt
1. Analysts
Review How Digital Platforms Have Become Integral To Nigeria's Economic Growth
2. Stakeholders
Call for Clarity in Regulation and Standardization of Nigeria's Digital Asset
Market
3. Digital Assets
Classification Aimed at Investor Protection - SEC
4. SEC Nigeria
Issues Statement on Digital Assets, Their Classification and Treatment
5. MAS Launches
Sandbox Express for Faster Market
Testing Of Innovative Financial Services
6. Three Firms
Admitted to the CMA, Kenya Regulatory Sandbox
7. G20 Ministerial
Statement on Trade and Digital Economy
8. Singapore is Now
Considering Virtual Banking Licenses Too-Here's Why
9. Let FinTech
Play, Grow: Expectations from A Regulatory
Sandbox for India
10. South Africa
Works On Policy ss Fintech Gives
Rise to Innovation
11. UK Financial Conduct Authority Acts to Improve Competition in The Investment Platforms Market
Related
Fintech
1. Four
Cornerstones of Payments in the Digital Age
2.
Categorisation
of Nigerian Payment Systems - What It Means For Fintechs
3.
Fintech Nigeria
Social Meet 7.0 Explores Digital Acceleration For 2021
4.
FintechNGR
Social Meet 7.0 Scheduled to hold on December 09, 2020
5.
FinTech Firms
Reported 13% Increase YoY in Transaction Numbers in H1 2020
6.
PCI DSS - Why it
Matters to Payment Schemes and Fintechs
7.
Wealth
Generation: Ecobank Advocates Collaboration Between Economic Stakeholders
8.
Visa Adds New
Partner Toolkit and Fintech Enabler Certification to Fast Track Program
9.
State of Fintech
Q3'20 Report: Investment and Sector Trends to Watch
10. Nigeria Fintech
Event Organized with the Expertise of the Economist Intelligence Unit
11.
FintechNGR Holds
3rd AGM, Inaugurates New GovCo
12. Ecobank
Advocates More Collaboration between Fintech, Banks, and Telcos
13. Nigeria Fintech
Week Begins; Engaging the New Unicorns
14. NSE, FinTech
Association of Nigeria to Highlight Capital Raising Opportunities for FinTech
Sector
Related to Capital Market
Related Videos