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SEC Proposes N10m Registration Fees For Issuing Houses, Others

The Securities and Exchange Commission Nigeria (SEC) on Monday proposed N10 million registration fee for issuing houses, underwriters and fund managers.

Currently the affected operators are paying only N500,000.

The proposed fee was contained in a document posted on the commission’s website titled ‘Exposure of proposed new rule and sundry amendments to the rules and regulations of the commission.’

Under the proposed fee, a broker is required to pay N3 million as registration fee compared to the N300,000 currently being paid while brokers/dealers would pay N5 million, up from the current N500,000 as registration fee.

This is even as a broker/dealer is to pay N100,000 each as processing fees and registration of sponsored individuals under the new rule.

A further analysis of the proposed adjusted fee showed that Sub-brokers (digital) fee was increased to N1 million from N200,000; sub-brokers (corporate) to N1 million from N200,000 and inter-dealer brokers to N5 million from the current N500,000.

According to the commission’s document, “all CIS fund managers shall pay annual supervisory fees of 0.2 per cent of the net asset value of the CIS under management not later than January 31 of every year to the commission.”

The SEC warned that failure to comply with the guidelines would make a fund manager to be liable to a penalty of N100,000 and a further sum of N5,000 for every day of default.

It further stated that with the new amendment, public companies and capital market operators would disclose penalties and sanctions imposed on them by SEC in their audited financial statements.

The commission clarified: “They shall continue to report outstanding penalties and sanctions in their subsequent annual reports by way of notes to the accounts until all penalties owed the Commission are fully paid and sanctions fully complied with.

“The commission shall publish on all public channels, including the SEC website or any other medium, the list of public companies and capital market operators with unresolved regulatory issues”, the SEC added.

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