It then becomes inevitable that these fund managers raise the minimum capital required to invest with them. This potentially leads to more financial exclusion, as young Nigerians with basic income become excluded from the SEC regulated investment such as mutual funds etc.
Nigerian regulators publishing bizzare new rules and then getting pushback from industry afterwards seems to be the standard moduls operandi. Wonder whether they've ever considered a more collaborative and consultative approach that helps them think through second order effects and the like.
Scratch that, I've actually been in several consultative forums where the regulator has gone on to ignore all reasonable objections to proposed rule amendments. Guess their approach to regulation is to extract more rent via fees and fines for themselves and like you say, absolve themselves of proper oversight by using crude tools like capital requirements as a gate and proxy for better business practices.
Seems industry has to learn how to regulate the regulator to minimize their over reach. Add that to another requirement for Nigerian businesses in addition to providing your own electricity and water!
I went through the four or whatever stages of grief reading this. But was made to understand that it was inevitable when people look to the SEC to help unscam them from CBEX. Given an economy with little economic complexity in terms of financial activities, the SEC just seized the opportunity to toll everybody.
It then becomes inevitable that these fund managers raise the minimum capital required to invest with them. This potentially leads to more financial exclusion, as young Nigerians with basic income become excluded from the SEC regulated investment such as mutual funds etc.
Nigerian regulators publishing bizzare new rules and then getting pushback from industry afterwards seems to be the standard moduls operandi. Wonder whether they've ever considered a more collaborative and consultative approach that helps them think through second order effects and the like.
Scratch that, I've actually been in several consultative forums where the regulator has gone on to ignore all reasonable objections to proposed rule amendments. Guess their approach to regulation is to extract more rent via fees and fines for themselves and like you say, absolve themselves of proper oversight by using crude tools like capital requirements as a gate and proxy for better business practices.
Seems industry has to learn how to regulate the regulator to minimize their over reach. Add that to another requirement for Nigerian businesses in addition to providing your own electricity and water!
I went through the four or whatever stages of grief reading this. But was made to understand that it was inevitable when people look to the SEC to help unscam them from CBEX. Given an economy with little economic complexity in terms of financial activities, the SEC just seized the opportunity to toll everybody.