SEC Says Upcoming Summit Will Focus on Technology-Driven Compliance Systems

The Securities and Exchange Commission (SEC) has announced that its forthcoming summit will place strong emphasis on technology-driven compliance as Nigeria’s capital market continues to adjust to global shifts in digital regulation, risk management, and investor protection. According to the commission, the summit is expected to bring together regulators, fintech innovators, market operators, policy experts, and industry stakeholders to explore how technology can strengthen compliance frameworks, boost transparency, and curb market abuses.

The SEC explained that the increasing digitisation of financial markets has made traditional compliance methods insufficient, particularly as new products, digital platforms, and automated trading systems dominate the investment ecosystem. The commission noted that emerging risks such as cyber fraud, algorithmic manipulation, cross-border scams, and unlicensed digital investment schemes require regulators and operators to adopt smarter, tech-driven surveillance tools capable of detecting threats in real time. The summit, it said, will serve as a platform to examine the current landscape and develop forward-looking strategies.

Officials of the commission highlighted that technology is now central to the future of regulation and supervision. With more Nigerians investing through mobile apps, digital wallets, online brokers, and fintech-enabled platforms, the SEC said the need for stronger compliance tools has become urgent. The commission observed that artificial intelligence, machine learning, cloud-based monitoring systems, and blockchain analytics can drastically improve the speed, accuracy, and efficiency of compliance operations while reducing human error.

The SEC also noted that the summit will address the challenges capital market operators face in adapting to new compliance expectations. Many firms, especially smaller operators, have raised concerns about the cost of deploying advanced compliance software and hiring technologists capable of managing digital systems. The commission acknowledged these challenges but insisted that technological adoption is no longer optional, as global best practices demand faster reporting, automated data verification, and stronger internal controls.

Industry experts expected at the summit will examine how digital compliance tools can enhance investor confidence, reduce market risks, and support the growth of Nigeria’s capital market. Analysts say that technology-led compliance can help identify unusual trading patterns, detect insider trading, track suspicious fund movements, and ensure that investment firms adhere to regulatory guidelines. By improving market integrity, experts believe the capital market can attract more local and foreign participation, boost liquidity, and encourage long-term investments.

The SEC also plans to use the summit to highlight regulatory reforms designed to protect investors from online investment fraud, Ponzi schemes, and unlicensed operators. With the rising popularity of digital investment offerings, many unsuspecting Nigerians have fallen victim to fraudulent platforms. The commission said that enhanced digital compliance and stricter oversight of online investment channels are critical to reducing these risks. The summit will therefore examine global regulatory approaches and how Nigeria can strengthen its enforcement capacity.

According to the commission, one key focus area will be the promotion of RegTech and SupTech solutions—technologies that help financial institutions manage compliance more efficiently and enable regulators to supervise markets more effectively. The SEC believes that integrating these technologies will support early detection of non-compliance, automate regulatory reporting, and streamline approval processes for capital market activities.

Market operators have expressed optimism about the summit, saying it presents a timely opportunity to harmonise digital compliance standards across the industry. Several operators argue that a uniform technology standard will help reduce inconsistencies in reporting formats, improve collaboration between institutions, and eliminate loopholes exploited by bad actors. They also believe that shared digital infrastructure could help reduce the financial burden on smaller operators, making compliance more inclusive and affordable.

The SEC added that the summit will also explore capacity building and digital literacy among market operators. The commission stressed that technology alone is not enough; there must also be skilled personnel capable of managing digital systems, interpreting real-time data, and responding swiftly to compliance breaches. Training programmes, certification courses, and regulatory technology workshops are expected to be part of the agenda.

Additionally, the summit will examine how data protection, cybersecurity standards, and digital identity verification can support better compliance outcomes. With increasing cyberattacks targeting financial institutions, the SEC said that cybersecurity must be at the core of market regulation. The commission plans to use the discussions to advance policies that ensure data privacy, secure transactions, and protect sensitive investor information.

Stakeholders also expect the summit to influence future policy directions and regulatory updates. The SEC hinted that feedback and recommendations from the event will guide the development of new regulatory guidelines that reflect technological realities in the market. These could include streamlined digital reporting structures, simplified licensing procedures for tech-driven operators, and stronger penalties for non-compliance.

 

The commission concluded that technology-led compliance is crucial to building a resilient, transparent, and globally competitive capital market. By bringing industry leaders together, the summit aims to accelerate Nigeria’s transition into a modernised regulatory environment capable of supporting innovation, safeguarding investors, and strengthening market stability.