The Securities and Exchange Commission (SEC) has announced the adoption of the Nigerian Sustainable Finance Principles (NSFP) which was developed by the Financial Services Regulation Coordinating Committee (FSRCC) for Capital Market Operators (CMOs).
The objective of these guidelines was to stimulate a resilient, competitive and sustainable market that would promote economic development.
According to a report from the News Agency of Nigeria (NAN), this disclosure is contained in a statement issued by the Commission in Abuja on Sunday, May 23, 2021.
The commission in its statement pointed out that the guidelines would improve corporate governance practices to ensure that the participants in the market operated in a transparent and sustainable manner adding that it will also help in accessing affordable capital market products by the economically less privileged.
The Commission said the guidelines and approach were principle-based and therefore do not prescribe specific implementation requirements.
It, however, noted that the principles be applied by each regulated entity in a manner that would fit their mandates, core values, and enterprise risk management framework.
SEC said, ”The adoption of financial sustainability principles and its reporting are vital steps towards achieving a sustainable economy. Consequently, regulated entities must report regularly on the extent to which they apply these principles.’’
The commission listed the regulated entities to include CMOs, Trade Groups, Self-Regulated Organisations (SROs) and Capital Trade Points.
SEC had recently come up with some policies and guidelines to boost capital market operations and ensure transparency.