May 28, 2021

SEC deadline for Compliance with Crowdfunding Regulations

Financial Services Updates

  1. The Securities and Exchange Commission on 26th May, 2021 directed all existing investment crowdfunding portals/digital commodities investment platforms to comply with the crowdfunding registration requirements under the rules governing Crowdfunding business in Nigeria (“Crowdfunding Regulations”) or cease operations by the 30thof June, 2021, failing which the operations of such platforms would be categorized as illegal and attract regulatory sanction as stipulated in the Crowdfunding Regulations.
  2. As part of efforts to ensure investor protection and innovation in the conduct of securities business, the Securities and Exchange Commission introduced the Crowdfunding Regulations which came into effect on the 21st day of January, 2021.
  3. Regulation 43, the transitional provision of the Crowdfunding Regulations, had required all crowdfunding portal/digital commodities investment platform to restructure all operations in accordance with the requirements of the Crowdfunding Regulations and apply for registration not later than 90 days from the effective date of the regulation which is 21st January, 2021.