Download Crowdfunding Guidelines from Nigeria’s Securities & Exchange Commission (SEC)

Download Crowdfunding Guidelines from Nigeria’s Securities & Exchange Commission (SEC)

Nigeria’s Securities and Exchange Commission (SEC) has issued updated guidelines and rules governing the operation of Crowdfunding activities in the nation. The 53-page document could be downloaded here.  Read the breakdown of the guidelines at Nairametrics:

Key Highlights of the new SEC regulations

  • SEC introduced Crowd Funding Intermediaries who will facilitate crowdfunding transactions such as offer for sale of securities or instruments through its portal.
  • This means anyone seeking to raise money through a crowdfunding service will have to go through a Crowd Funding Intermediary (CFI).
  • Thus, a fundraiser (the initiator of the fund) will need to go through a CFI web portal to raise capital
  • The new rules also limit the amount retail investors can invest in a crowdfunding transaction to just 10% of their net annual income in a year.
  • This means individuals cannot invest more than 10% of their net salaries in crowdfunding activities. But this excludes High Networth Individuals who do not have limits.

 

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