SEC commences technology adoption assessment for capital market operators

By Obas Esiedesa, Abuja 

The Securities and Exchange Commission (SEC) has launched a technology adoption assessment for registered Capital Market Operators (CMOs) in a bid to evaluate the level of technological integration across the capital market.

In a recent circular, the Commission announced that the survey is designed to assess the adoption of advanced technologies by CMOs and to help shape future regulatory frameworks. 

Speaking on the initiative, SEC Director-General Dr. Emomotimi Agama emphasized the importance of innovation in driving growth, enhancing efficiency, increasing transparency, and building resilience in the capital market. He reiterated the Commission’s commitment to adapting its regulatory approach to keep pace with evolving technological trends.

Dr. Agama explained that the SEC employs a three-pronged strategy in regulating innovation—focusing on safety, market deepening, and the development of problem-solving solutions. “This approach continues to ensure the creation of a more efficient and reliable capital market ecosystem,” he said.

While emphasizing the Commission’s ongoing support for innovation, Dr. Agama pointed to the Regulatory Incubation programme, which provides a controlled environment for new FinTech firms to operate for up to one year. 

He noted that the initiative allows the SEC to observe and develop appropriate rules for emerging technologies, while safeguarding investor interests and maintaining market stability.

He also noted that the Commission remains committed to upholding market integrity, referencing a March 2024 announcement on plans to name and shame operators who violate market regulations—a move aimed at boosting investor confidence and enforcing compliance.