The Securities and Exchange Commission (SEC) has issued a directive ordering all market operators, fintech service providers, and persons owning or operating online investment and trading platforms to register and obtain the appropriate licences from the Commission by August 31, 2026.
The directive, issued on June 23, 2026, is part of the SEC's efforts to strengthen investor protection in response to a growing trend of unregistered online investment applications and trading platforms facilitating access to trading in securities listed in local and foreign markets.
In the notice, the SEC expressed concern about the risks posed by fraudulent and unregulated online investment-related platforms and emphasised that the Sandbox Guidelines establish a framework for evaluating such financial technology and associated digital platforms to mitigate these risks and implement effective safeguards for investors.
Under the new directive, a licensed market operator owning or operating an investor-facing investment technology or online platform must register and obtain a licence from the SEC for each technology or platform. Similarly, a fintech service provider or any person owning or operating an online investment and/or trading platform that performs any SEC-licensed activity must obtain the appropriate registration or licence. A fintech service provider or any person that operates a digital platform serving as a digital intermediary must also obtain the appropriate licence or registration from the SEC.
The directive does not apply to ancillary technology services or platforms designed to solely support back-office and non-investor-facing operations, including reporting, reconciliation, and monitoring; transaction screening systems and AML/CFT regulatory technology solutions; online reporting and complaints portals for investors; and online educational platforms used for investor protection and fraud awareness only.
The SEC has warned that any person or entity that operates, whether directly or indirectly, an online investment application or trading platform that is not approved, licensed, or registered by the SEC must immediately desist from doing so. The Commission has also urged the investing public to verify the authenticity of any investment products or platforms advertised through conventional or online media via the SEC's official channels of communication.
The registration and licensing process includes completion of the Platform Owners' Entry Form, an invitation by the SEC for a demonstration of the platform or technology, feedback and guidance on regulatory steps, payment of registration or licensing fees, and issuance of a registration or licensing certificate.
The SEC has warned that failure to comply with the directive will attract sanctions under section 209(4) of the Securities Industry Act, 2016 (Act 929) as amended. The directive takes immediate effect and remains in force until otherwise revised, varied, amended, or revoked.