Risevest, a Nigerian fintech company, has successfully acquired a Fund and Portfolio Manager licence from the Securities and Exchange Commission (SEC), marking a significant development in its regulatory compliance. This licence is issued through its subsidiary, RV Fund Management Limited, after months of negotiations with the SEC. The engagement was precipitated by a previous warning from the SEC to the public against investing through Risevest due to the absence of the required regulatory licence, which had been a barrier for the company’s operations. Risevest reassured its clients that their funds were protected through a trusteeship with Meristem Trustees Limited, a licensed firm in Nigeria.

The regulatory approval allows Risevest to formally operate within the established legal framework for investment platforms in Nigeria. In addition, the company had previously acquired Chaka, another fintech service that possessed a valid trading licence, enabling it to continue its services despite the outstanding licensing issues. Risevest joins an increasing number of digital investment platforms, including Bamboo and Trove, which are now fully compliant with SEC regulations, indicating a shift in the regulatory climate for Nigeria’s fintech sector.

This development is significant as it reflects a growing acceptance and oversight of fintech services in Nigeria’s capital markets, aiming to enhance transparency and protect retail investors. The increase in retail participation, evidenced by an 88% rise in investor trades, demonstrates a burgeoning interest among Nigerians in capital market investments, which is likely to reshape the investment landscape in the country, providing more opportunities for financial growth and innovation in the sector.