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Coy gets digital broker licence

SEC

Systems Technology Limited, Bamboo has said it has been granted a digital sub-broker licence by the Securities and Exchange Commission.

According to a statement from the firm, this would allow it to operate in the Nigerian capital market as well as include Nigerian securities on its platform.

The firm added that it began the application process for the SEC’s digital sub-broker license in 2021.

The Chief Executive Officer and Co-founder of Bamboo, Richmond Bassey, said, “We are thrilled to reach this important milestone and are fully committed to our obligations as a registered digital broker.

“Since the launch of Bamboo, we work every day to provide the best technology solutions backed by industry best practices, to allow Nigerian retail investors to access an unprecedented number of digital securities to build long-term wealth. We are grateful for our collaboration with the SEC, which has shown its dedication to protect investors while allowing for innovation to flourish.”

It added that SEC’s issuance of the licence to Bamboo ensured oversight of the relationship with its sponsoring broker, Lambeth Capital, while also empowering it to enter into partnerships with multiple brokers to serve its clients.

“The licensce will also enable Bamboo to deepen its relationships with financial service providers to offer its API services,” it stated.

In 2021, SEC asked fintech trading platforms like Bamboo to cease and desist from offering foreign stocks to Nigerians.

It said, “The attention of the Securities and Exchange Commission (the Commission) has been drawn to the existence of several providers of online investment and trading platforms which purportedly facilitate direct access of the investing public in the Federal Republic of Nigeria to securities of foreign companies listed on Securities Exchanges registered in other jurisdictions.

“These platforms also claim to be operating in partnership with Capital Market Operators registered with the Commission.”

According to the commission only foreign securities listed on any exchange registered in country may be issued, sold, or offered for sale or subscription to the Nigerian public.

Later in 2021, the Federal High Court in Abuja granted an exparte motion to temporarily freeze the bank accounts belonging to Bamboo and some other fintechs for the next six months.

According to the Central Bank of Nigeria, the fintechs were operating without licence as asset management companies and utilising foreign exchange sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of a CBN circular.

A Federal High Court Abuja later issued a varied order to unfreeze the firm’s bank accounts to enable them to continue their operations.

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