As the Apex regulatory body for the Nigerian capital market, the
Securities and Exchange Commission (the “SEC”) released
a circular on June 16, 2021 notifying members of the public and
capital market operators of its introduction of the Regulatory
Incubation (“RI”) program. The RI program is an interim
measure geared towards fostering effective regulation which
accommodates innovation by FinTechs, without compromising market
integrity and within limits, ensuring investor protection at all
times.
The RI program is set to launch in the third quarter of 2021,
Fintech business models and processes will be admitted into cohorts
for a one-year period. Essentially, the RI program will serve as an
incubator for the admitted FinTechs to operate under some
prescribed basic but limited regulatory provisions for one year,
giving the SEC the opportunity to supervise Fintech entrepreneurs
with the proposed new models of providing capital market services
before they become fully
