FCCPC REGISTRATION FOR DIGITAL LENDING COMPANIES
The Federal Competition and Consumer Protection Commission (FCCPC) is the regulatory authority responsible for, among other things, the administration and enforcement of the Federal Competition and Consumer Protection Act 2018 (the Act). Recently the FCCPC, NITDA (National Information Technology Development Agency) together with other federal agencies have been looking into the activities of digital lending companies in Nigeria pertaining to infringements of the privacy of their customers and shaming of their debtors.
The FCCPC first issued orders to multiple financial institutions freezing or suspending operations of certain accounts, which some of the money lenders have used to conduct business transactions subject to investigation.
The FCCPC has now laid down interim guidelines and regulations to regulate digital money lending organizations, which include that every Digital Lending organization now has to register with the FCCPC.
Requirements for FCCPC Registration for Digital Lending Companies
The following are the requirements for registration with the FCCPC by digital lending companies.
- Certified copy of the certificate of incorporation of the applicant.
- A brief description of the business of the applicant and where relevant, their groups.
- Organogram showing role players and location of key role players and any operational approving authorities/person.
- Name and address of a person within the business who is authorized to accept all correspondence and accept service on behalf of the business.
- Evidence of membership in any trade or professional associates.
- Any service level agreements with any service providers with respect to the operation but excluding administration.
- Evidence of feedback and complaint resolution mechanism.
- Evidence of data auditing compliance and data auditing report submitted to the Nigerian Data Protection Bureau
- Evidence of tax payments or tax waivers where applicable.
- Money lending license.
- All applicable fees associated with service.
- FCCPC INTERIM DIGITAL LENDING GUIDELINES FORM 002 – a declaration for Digital Lending Businesses in Nigeria.
It is worthy of note that the obligation to comply with the FCCPC regulations &guidelines is mandatory before any digital lending company can operate in Nigeria. A lending company found dodging or circumventing the FCCPC guidelines may be restricted from carrying on business operations in Nigeria apart from the likely prosecution of the director(s) of such a company.
Written by Corporate & Commercial Law Department of Resolution Law Firm