By Adedapo Adesanya
Nigeria’s online brokerage firm, Bamboo, has announced that it has been issued a digital sub-broker license by the Securities and Exchange Commission (SEC).
The new license will allow the company to operate in the Nigerian capital market as well as include Nigerian securities on its platform.
SEC’s issuance of the license to Bamboo ensures oversight of the relationship with its sponsoring broker, Lambeth Capital, while also empowering it to enter into partnerships with multiple brokers to serve its clients.
In addition, the license will also enable Bamboo to deepen its relationships with financial service providers to offer its API services.
Founded in 2019, Bamboo allows users to invest fractionable amounts in their favourite publicly listed US companies, from Tesla to Apple, ETFs, mutual funds, or fixed-income products.
With the new development, Bamboo disclosed that it is focused on its commitment to best practices and allowing its retail investors the ability to trade local securities on the Nigerian Exchange (NGX) Limited.
In 2021, Bamboo began the rigorous application process for the SEC’s digital sub-broker license, which was introduced that year. This included a thorough examination of its finances and governance process.
Speaking on this, Mr Richmond Bassey, CEO and Co-founder of Bamboo, said, “We are thrilled to reach this important milestone and are fully committed to our obligations as a registered digital broker.
“Since the launch of Bamboo, we work every day to provide the best technology solutions, backed by industry best practices, to allow Nigerian retail investors to access an unprecedented number of digital securities to build long-term wealth.”
“We are grateful for our collaboration with the SEC, which has shown its dedication to protect investors while allowing innovation to flourish,” he added.
Modupe Gbadeyanka