A Review of the

Proposed Sec Rules On
Robo-Advisory Services.

01

Introduction

The Securities and Exchange Commission of Nigeria, has rolled out a proposed rule to Capital Market Operators (CMOS) and persons (Individual & Corporate) looking to offer robo-advisory services in the Nigerian Capital Market.

Robotic Advisers, often informally called “robo-advisers”, are a growing trend within the investment advisory industry worldwide, potentially changing the market for investment advice. They deploy algorithm based programs to provide discretionary investment services to their clients, by using personal information submitted by clients to generate and manage their investment portfolios.

The proposed rule defines ‘Robo-Advisers’ as persons (individual & corporate) who offer digital advisory services. This potentially provides immense opportunities for the Nigerian Tech Eco-System, and boosts confidence in the regulatory space, and potentially provides an innovative, cost-effective and tailored advisory services for the Nigerian Investing community.

The highlights of the proposed rule are as follows:

Authors

Ibrahim Usman Wali

Moyosore Mustapha

Proposed Sec Rules On Robo-Advisory Services was last modified: May 19th, 2021 by judge
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