SEC adopts sustainable finance guidelines for CMOs

Securities and Exchange Commission (SEC) has adopted the Nigerian Sustainable Finance Principles (NSFP) which was developed by the Financial Services Regulation Coordinating Committee (FSRCC) for Capital Market Operators (CMOs).  A statement by the Commission in Abuja on Sunday said that the objectives of the guidelines were to stimulate a resilient, competitive and sustainable market that would promote economic development. The commission said the guidelines would also improve corporate governance practices to ensure that the participants in the market operated in a transparent and sustainable manner.

According to SEC, it will also help in accessing affordable capital market products by the economically less privileged. The Commission said the guidelines and approach were principle-based and therefore do not prescribe specific implementation requirements. It however noted that the principles be applied by each regulated entity in a manner that would fit their mandates, core values, and enterprise risk management framework. 

”The adoption of financial sustainability principles and its reporting are vital steps towards achieving a sustainable economy. Consequently, regulated entities must report regularly on the extent to which they apply these principles,” the Commission explained. SEC however listed its regulated entities to include CMOs, Trade Groups, Self-Regulated Organisations (SROs) and Capital Trade Points. (NAN)