The National Assembly has granted unfettered regulatory powers to Securities and Exchange Commission (SEC) to register and regulate online forex trading activities, platforms and intermediaries.
The new powers conferred on the commission were contained in Report of the Committee on Capital Market on a bill for an Act to repeal the Investments and Securities Act, 2007.
The bill which originated from the Senate also passed through third reading on the floor of the House of Representatives last week, further seeks to enact the Investments and Securities bill and to establish Securities and Exchange Commission as the apex regulatory authority for the Nigerian capital market as well as regulation of the market to ensure capital market formation, the protection of Investors, maintain fair, efficient and transparent market and reduction of systemic risk and other related matters.
Through the new amendments, clause three (three)(o) of the bill empowers the apex regulatory authority to register and regulate online forex trading activities, platforms and intermediaries.
Clause three(four)(c) further empowers the commission to: “place directors of public companies on probation for a period of time considered reasonable by the commission in accordance with regulations made pursuant to this Bill.”
In addition to previous functions/powers stipulated in the repealed Act of Parliament, the newly passed bill further empowered the Commission to “prepare guidelines, organise training programmes and disseminate information necessary for the establishment of securities exchanges and other market venues; appoint or procure the appointment of all such qualified persons, professionals or experts to give effect to or for performance of any of its objectives, functions and powers in this Bill.”
