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Securities law

ASHON Calls for Cooling-Off Period Before Full Implementation of Investment and Securities Act 2025

Strategic Insights

— 1 min read

The Association of Securities Dealing Houses of Nigeria (ASHON) has requested a temporary reprieve before the full rollout of the newly enacted Investment and Securities Act (ISA) 2025. This measure aims to give ASHON members sufficient time to familiarize themselves with the Act's innovative provisions, including those related to digital assets, crowdfunding, and financial technology (FinTech). Market observers are concerned that capital market participants may face challenges in adhering to the new regulations due to their complexities. ASHON's Chairman, Sam Onukwue, commended the Securities and Exchange Commission (SEC) on the ISA 2025 but emphasized the need for a cooling-off period to enable more extensive knowledge of the new securities laws.

Key Takeaways:

  • ASHON is requesting a cooling-off period before the full implementation of the ISA 2025 to enable its members to gain a deeper understanding of the new securities laws.
  • The ISA 2025 incorporates innovations such as digital assets, crowdfunding, and financial technology (FinTech), and provides a clearer basis for regulating Virtual Asset Service Providers (VASPs) and digital investment products.
  • The Act empowers the Securities and Exchange Commission (SEC) to prosecute and jail erring market operators, which may lead to a higher risk of sanctions for non-compliance.
  • Market operators are advised to study the new ISA provisions and hire professionals to enhance their knowledge and interpretation of the Act.
  • The SEC recommends adopting self-reporting to mitigate sanctions in the event of a breach.

Statistics:

  • The ISA 2025 introduces provisions for regulating digital assets, crowdfunding, and financial technology (FinTech).
  • The Act empowers the SEC to prosecute and jail erring market operators, potentially leading to increased sanctions.
  • The workshop featured presentations on, 'Translating the New ISA 2025 Act into Practice,' 'Legal Perspectives on Digital Assets and Regulatory Frameworks,' and 'The ISA 2025 and Digital Innovations.'

Sources:

  • ASHON Chairman, Sam Onukwue, at the Workshop organized by ASHON on the implementation of ISA 2025.
  • Executive Commissioner for Operations of the Commission, Bola Ajomale, at the same workshop.
  • The Investment and Securities Act (ISA) 2025 (AS provided).

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