SEC
and the Islamic Financial Services Board (IFSB)
SEC maintains a cooperative relationship with the Islamic Financial Services Board (IFSB), engaging in information sharing and dialogue on issues like regulatory developments, Shariah compliance, and mitigating financial risks in the Islamic finance sector. This collaboration aims to foster a sound and stable Islamic financial environment, ultimately benefiting investors and the broader financial landscape.
The Nigerian Securities and Exchange Commission (SEC) fosters a strong and collaborative relationship with the Islamic Financial Services Board (IFSB), a leading international standard-setting body dedicated to the development and harmonization of regulations for the Islamic finance industry. This partnership plays a crucial role in strengthening the Nigerian Islamic capital market, promoting investor protection, and ensuring its alignment with global best practices.
IFSB: Championing Sound and Stable Islamic Finance
Established in 2002, the IFSB brings together regulatory authorities, financial institutions, and industry experts from over 50 jurisdictions. Its core objectives include:
- Issuing globally recognized Sharia-compliant regulatory standards
- Fostering the stability and integrity of the Islamic financial system
- Protecting the rights and interests of investors
- Facilitating cross-border cooperation and information sharing
- Nigeria's Commitment to Islamic Finance Development
Recognizing the growing significance of Islamic finance, the SEC joined the IFSB in 2010. Since then, the SEC has actively participated in the IFSB's initiatives, contributing to the development of international standards and best practices for the Islamic capital market.
Key Milestones in the SEC-IFSB Partnership
- 2010: The SEC joins the IFSB, signaling its commitment to the growth and development of the Islamic finance sector in Nigeria.
- 2013: The SEC publishes its Guidelines on Non-Interest Capital Market Operations, outlining the regulatory framework for Sharia-compliant financial products and services.
- 2016: The SEC hosts the IFSB's 27th Council Meeting, further solidifying its position as a leader in Islamic finance regulation.
- 2023: The SEC and IFSB jointly organize the 1st International Forum on Non-Interest Capital Markets, addressing key challenges and opportunities for the Nigerian NICM.
The SEC-IFSB Partnership in Action
The SEC's collaboration with the IFSB has yielded significant benefits for the Nigerian Islamic capital market, including:
- Enhanced Regulatory Framework: The IFSB's standards have informed the development of the SEC's regulatory framework for Islamic finance, ensuring investor protection and market integrity.
- Product Innovation: The SEC's collaboration with the IFSB has facilitated the development and introduction of new Sharia-compliant financial products and services, catering to the diverse needs of investors.
- Capacity Building: The SEC and IFSB have partnered on capacity-building initiatives, equipping stakeholders with the necessary knowledge and skills to navigate the Islamic finance landscape.
- Cross-Border Cooperation: The SEC's participation in the IFSB's Multilateral Memorandum of Understanding (MoU) enables efficient information sharing and regulatory cooperation with other IFSB member jurisdictions.
To learn more about the IFSB's work and its impact on the global Islamic finance industry, we encourage you to visit the IFSB website:
Through its active engagement with the IFSB, the SEC remains committed to fostering a robust and vibrant Islamic capital market in Nigeria, aligned with international best practices and dedicated to serving the needs of all stakeholders.