We will protect the capital market against cybersecurity risks—SEC

By Dipo Olowookere

Efforts are being made to work with key stakeholders to protect the Nigerian capital market from cybersecurity risks, the Securities and Exchange Commission (SEC) has assured.

“The issue of cybersecurity is becoming increasingly important globally. Many of our activities as individuals and organizations are now conducted digitally more than ever before.

“While this has significantly increased our level of efficiency, it has triggered a new set of risks that we need to recognize and address. We are working on a sector strategy to address these risks,” the CEO of the company said on Thursday. agency, Mr. Lamido Yuguda, when he briefed reporters on the results of the first Capital Market Committee (CMC) meeting of 2022.

For more than two decades, the CMC has been a real interface platform between capital market players to discuss issues related to the development and smooth running of market activities.

During the last gathering for 2021, an official from the Office of the National Security Advisor (ONSA), Colonel Bala Fakandu, sensitized the members on the implementation of the National Cybersecurity Policy and Strategy for the Security Sector. finance and capital markets.

He said the issue of cybersecurity is becoming increasingly important globally as many activities of individuals and organizations are now conducted digitally more than ever.

The CEO of the SEC told reporters that while this has dramatically increased the level of efficiency, it has triggered a new set of risks that the commission must recognize and address, necessitating the need to work on an industry strategy to deal with it. to these risks.

Mr. Yuguda said the commission will continue to improve the existing regulatory framework guiding market operations keeping pace with changing market practices, especially with the advent of fintech which has significantly changed the ways and means of doing business in the capital market.

He also said that the agency has successfully concluded the comprehensive review of the 2007 ISA with the aim of pushing through the Investment and Securities Bill 2021 in the year 2022.

“Together with the National Assembly Committees on Capital Markets, the committee held a retreat to review the entire bill.

“We sincerely appreciate the support received from the Senate and House Capital Markets Committees during the review exercise,” he said.

Speaking on the updated blueprint, which will guide the development of the capital market for the next 5 years, the SEC CEO explained that the review, which is an essential part of the implementation process and was necessary to ensure that initiatives remain relevant, measurable and goal-oriented, has been completed.

He added that the SEC will issue an invitation to all market participants for the launch of the revised master plan in the near future.

On the issue of transaction costs which were non-existent or negligible in the debt capital market, the SEC CEO said that the cost of regulation was relatively the same as in other instruments and markets, noting that it is added to the fact that the tax advantage has provided some support to the market, allowing it to develop.

“This support has been largely funded by fees from other segments of the capital market. We believe that the debt capital market has grown considerably and is mature enough to contribute to the cost of regulating the Nigerian capital market. , ensuring that it remains safe and fair for all participants.

“As such, the Commission has introduced a regulatory fee structure on secondary market transactions in debt securities, which took effect on 1 January 2022,” he said.

Previous US Treasury seeks comment on capital market support for NBCR/cyber terrorism
Next Do I have to pay capital gains tax on my home? CPAs say salespeople should ask for help