Tinubu Enacts Investments and Securities Act 2024: A Milestone for…

President Bola Tinubu has signed the Investments and Securities Act (ISA) 2024, which replaces ISA No. 29 of 2007, enhancing the Nigerian capital market’s legal structure. The Act boosts investor protections, aligns with international best practices, and introduces significant regulatory reforms, as confirmed by the Securities and Exchange Commission.

President Bola Tinubu has officially enacted the Investments and Securities Act (ISA) 2024, repealing the previous ISA No. 29 of 2007. This pivotal legislation enhances the legal framework of Nigeria’s capital market, focusing on bolstering investor protection while instituting vital reforms to promote market integrity and sustainable growth. The Securities and Exchange Commission (SEC) confirmed that the ISA 2024 solidifies its authority as the primary regulator in Nigeria’s capital market.

The ISA 2024 introduces transformative provisions that align Nigerian market operations with international best practices. Dr. Emomotimi Agama, Director-General of the SEC, commended the President’s assenting to the Act as a significant advancement for the capital market. He stated that the new Act represents a commitment to creating a dynamic and inclusive capital market while addressing regulatory gaps and enhancing investor security.

Dr. Agama expressed gratitude towards all stakeholders involved, emphasizing the importance of their continued collaboration for the successful implementation of ISA 2024. He acknowledged the National Assembly for its dedication to enacting this important legal framework. Agama highlighted that the rigorous engagement and bipartisan support throughout the legislative process underscored the National Assembly’s commitment to fostering economic growth and boosting investor confidence.

The SEC plans to continue engaging with investors and market participants to facilitate a smooth transition from the repealed ISA 2007 to the ISA 2024 regime. The new Act enhances regulatory powers in line with global standards, allowing Nigeria to maintain its “Signatory A” status under the IOSCO’s Enhanced Multilateral Memorandum of Understanding.

Key provisions of ISA 2024 include the classification of securities exchanges into Composite and Non-composite categories, recognition of digital assets as securities, and new regulations surrounding Financial Market Infrastructures. Additional stipulations improve the regulatory landscape for various market participants while enhancing systemic risk management.

The Act mandates the use of Legal Entity Identifiers (LEIs) to enhance transparency in securities transactions and explicitly bans Ponzi schemes with strict penalties for offenders. It also amends crucial aspects related to the Tribunal structure and composition to ensure effective regulation in Nigeria’s capital market.

The enactment of the Investments and Securities Act (ISA) 2024 represents a crucial advancement in Nigeria’s capital market, strengthening regulatory frameworks and aligning operations with global standards. The Act fosters investor protection, enhances market integrity, and introduces measures to address systemic risks. The ongoing collaboration among stakeholders will be critical for the successful implementation and operational transition to the new regulations, thereby promoting local and foreign investments in Nigeria’s economic landscape.

Original Source: nannews.ng