SEC Begins Risk-based Supervision Project Implementation 

SEC begins implementation of risk-based supervision project –  Newsdiaryonline

Yemisi Izuora

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

The project is to finance the Risk Based Supervision Framework Implementation and Capacity Development Project.

According to the 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 tools as well as its capacity to achieve its mandate of investor protection and minimising systemic risk.

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

“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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