President Bola Tinubu has signed the Investments and Securities Act (ISA) 2024 into law, replacing the 2007 Act. This legislation enhances investor protection and aligns Nigeria’s capital market with international standards while introducing transformative regulatory measures. The SEC commended the passage of this Act as a pivotal development for economic growth and investor safety.
President Bola Tinubu has officially signed the Investments and Securities Act (ISA) 2024, repealing the previous Act from 2007. This significant legislation strengthens the regulatory framework of Nigeria’s capital market, improving investor protection and implementing essential reforms aimed at promoting market integrity, transparency, and sustainable growth. The Securities and Exchange Commission (SEC) confirmed this development, reiterating its authority as the premier regulatory body for the Nigerian capital market.
The new Act introduces transformative measures to align Nigeria’s market operations with global best practices. Dr. Emomotimi Agama, Director-General of the SEC, praised the President’s assent as a pivotal advancement for the capital market, stating that the ISA 2024 demonstrates a commitment to cultivating a dynamic, inclusive, and resilient financial market. The Act also addresses regulatory gaps and enhances the SEC’s ability to support innovation and assure investor safety.
Dr. Agama urged sustained collaboration among stakeholders for the effective execution of the ISA 2024, emphasizing its importance for the country’s economic wellbeing. He lauded the National Assembly for its efforts throughout the legislative process, which aligned with the country’s broader economic aims. Furthermore, he recognized the contributions of the Ministers of Finance for their strategic guidance.
The ISA 2024 enhances the powers of the SEC in accordance with international securities regulatory standards, thereby retaining its “Signatory A” status within the IOSCO framework. Key features of this legislation include the classification of Exchanges, provisions concerning Financial Market Infrastructures, and the inclusion of virtual/digital assets under SEC regulation. It also aims to foster a broader range of innovative products within the Nigerian capital market.
Additional provisions allow for improved monitoring of systemic risk and aim to enhance flexibility for Sub-National entities when raising capital. The Act mandates the use of Legal Entity Identifiers (LEIs) in market transactions, enhancing the transparency of securities dealings. Moreover, it prohibits Ponzi schemes and establishes strict penalties for such unlawful activities, ensuring stronger safeguards for investors.
The enactment of the Investments and Securities Act (ISA) 2024 represents a significant milestone in strengthening the Nigerian capital market. With enhanced regulatory authority, increased investor protections, and alignment with global standards, the Act is poised to foster economic growth, innovation, and transparency within the financial sector. The collaboration among various stakeholders will be crucial for ensuring the effective implementation of this transformative legislation.
Original Source: nannews.ng
