Morocco’s capital market regulator, SEC to collaborate for investment in mutual funds

The Moroccan Capital Market Authority says its plans to collaborate with the Securities and Exchange Commission (SEC) to invest mutual funds in Nigeria.

A mutual fund is an investment fund that pools money from many investors to purchase securities.

According to NAN, Nezha Hayat, the chairperson of the Moroccan capital market regulator, announced the plans during a visit by the SEC board to the authority’s headquarters in Rabat.

She emphasised the importance of collective investment schemes (CIS), noting that they allow individuals to invest their money in regulated and controlled funds.

“People have more access through CIS. It is key to encourage the truth of any market,” Hayat said.

“I believe in an integrated market so cooperation is better. We are interested in dual listing; we will soon be authorising funds in foreign currency which means the mutual funds can also be invested in foreign countries.

“We have a special focus on Nigeria, which will be one of the markets where this will happen. We need to deploy initiatives that will focus on developing our continent.”

Hayat also expressed her satisfaction with the partnership between the two regulatory agencies, highlighting the evolution of the capital market.

She said investors now prefer the capital market due to its diversity, adding that “but for us, everything goes through mutual funds”.

AGAMA: STRONGER PARTNERSHIP NEEDED AMONG AFRICAN MARKETS

In his remarks, Emomotimi Agama, director-general (DG) of SEC, called for stronger collaboration among African markets to enhance interconnectivity across the continent and foster the development of new financial products.

“We need to cooperate in Africa, invest in each other’s markets and grow our continent. We want to build collaboration so that, as Africans, we can have a focus and build a strong interconnection. The time is now for us to look inwards,” he said.

“We are aware of your strength in CIS, and we know we can learn a lot from you. The population of Nigeria is huge, and we need people to understand the huge benefits in CIS and how they can key into it.

“We appreciate the strength of the Moroccan economy and structure, and we want to see what role the capital market has played in all of this.”

Agama underscored the central role of the capital market in the economy, emphasising the need for citizens to leverage it for wealth creation and improvement of quality of life.

“The capital market is an enabler to the development of the economy and we believe there is so much to learn from Morocco to help strengthen our own market,” he said.

“We are excited about what the future holds for us and how we can forge a common front. We are happy about the progress of CIS in Morocco and we want to learn from you and also tell you about our experience because there is a lot to gain.

“Our relationship and integration will go a long way in building both markets and making life better for our citizens. We encourage government to use long-term capital for long-term projects.”

Mairiga Katuka, SEC board chairman, also emphasised the commission’s interest in learning from other jurisdictions to enhance the Nigerian capital market.