As part of its efforts to reinforce the commitment to regulatory compliance and transparency, digital investment platform, Chaka has received a license from Nigeria’s Securities and Exchange Commission (SEC) to operate its digital platform for buying and selling stocks.
This makes Chaka the first recipient of this newly created license “Digital Sub-Broker/Sub-Broker Serving Multiple Brokers Through a Digital Platform License” by the SEC.
Earlier this year, the Securities and Exchange Commission of Nigeria issued a circular directing Investment Technology platforms such as Chaka to cease offering foreign stocks to Nigerians.
READ: SEC restrains fintech company, Chaka from advertising or offering for sale shares
An excerpt from the circular stated that “… only foreign securities listed on any Exchange registered in Nigeria have the permission to engage in any of form of transaction with the Nigerian public.”
This development had led Chaka to take steps in registering for the “newly created license” with the Securities Exchange Commission of Nigeria (SEC).
Founded in 2019 by Tosin Osibodu and Olaolu Ajose, Chaka enables every business and person in Africa to access borderless digital investment and wealth management opportunities. The platform offers over 4,000 stocks from publicly traded companies in Nigeria and the US.
READ: SEC and the proliferation of unregistered investment platforms
The company has remained transparent about its regulatory status, leveraging strategic partnerships with registered brokers. All brokerage investments on its platform are facilitated by Citi Investment Capital Limited, a duly licensed brokerage firm registered with the Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS), and regulated by the Nigerian Securities Exchange Commission (SEC).
What they are saying
Commenting on the new license acquisition, Tosin Osibodu, Co-founder & CEO, Chaka Technologies said:
“We are honoured to be the foremost fintech company to receive SEC’s first Fintech license in Nigeria, the Digital Sub-Broker license.
For us, this is an important step towards achieving our vision to level the playing field for African investors, and a defining moment for the future of digital investments in Nigeria, and Africa at large.
Receiving this new license will enable us to continue to power on our mission to enable digital investing for businesses and individuals in the country and beyond.
As Nigeria remains an attractive hive for fintech innovation, this new license from the SEC is the much-needed guide to help safeguard the investing public amid the ever-evolving landscape.
This license represents a significant milestone for all players within this industry, and we are confident that it will strengthen efforts towards fostering further growth and transformation.
We are proud to set this precedent and are excited for the long-term impact of this new regulation and what it signals for the future. We are also thankful for the continued trust from our investors and partners, as we remain committed to fulfilling their needs.”