SEC Chief Warns on Risks of Innovation at Capital Market Summit

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Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), has urged stakeholders in Nigeria’s capital market to remain vigilant about the risks associated with innovation, including cybersecurity threats, regulatory challenges, and market volatility.

Speaking at the 2024 Capital Market Solicitors Association (CMSA) Annual Business Summit in Lagos, Agama emphasized the importance of balancing innovation with robust risk management to ensure market stability and investor protection.

The summit, themed “Revolutionising the Nigerian Capital Market through Innovative Financial Instruments for Sustainable Development,” brought together leaders from finance, law, and the capital market. Agama highlighted the SEC’s proactive stance on emerging financial technologies and products, stressing the Commission’s three-pronged regulatory approach focusing on safety, market deepening, and problem-solving. He also introduced the SEC’s regulatory incubation program, which supports fintech growth by allowing new businesses to operate within a controlled environment while the SEC develops appropriate regulations.

Agama reiterated the goals of the Revised Capital Market Master Plan (RCMMP 2021-2025), which aims to leverage technology and innovation to deepen the Nigerian capital market. He acknowledged the challenges of embracing innovation, stressing the need for strong risk management frameworks and safeguards to protect investors. Collaboration among stakeholders, including the CMSA, legal professionals, regulators, and market participants, was highlighted as crucial for fostering trust and transparency in the market.

Source: The Sun

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