Securities Market: SEC Commences Implementation Of Risk-based Supervision Project

The Securities and Exchange Commission (SEC) has commenced the implementation of the regulatory capacity improvements under the risk-based supervision framework and capacity building project.

In a statement, the commission said the project funded from the African Development Bank (AfDB) group’s administered Capital Markets Development Trust Fund, is to finance the Risk Based Supervision Framework Implementation and Capacity Development Project.

According to SEC, the principal objectives of the project are to provide technical assistance and capacity building on selected areas of the Commission’s operations, support implementation of risk-based supervision framework, improve the securities markets regulatory environment and broadening of market instruments that will help deepen the capital markets in Nigeria and strengthen the Commission’s supervisory capacity to achieve its mandate of investor protection and reducing systemic risk.

According to the statement, the mode of procurement to be adopted for the project is Quality and Cost Based (QCBS) and the risk-based supervision framework implementation component would involve the development of best practice, risk based supervision inspection manuals, tools and guidelines for the market.

The statement read in part; “The envisaged activities also include capacity building on prudential risk-based supervision approach including the development or update of relevant risk matrices and models for data analysis and interpretation as well as expansion of existing AML/CFT matrix.

“Capacity building in risk-based supervision will focus on enhancing SEC’s approach in carrying out its monitoring and supervisory role over all capital market operators namely fund/investment managers, conventional & commodity exchanges, stockbrokers, issuing houses (investment banks) etc” The SEC stated.”

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