The Securities and Exchange Commission (SEC) Nigeria is to commence regulatory fee on fixed income (Bonds) secondary market transactions with effect from January 1, 2022.
This disclosure was contained in a Circular dated December 15, 2021 and signed by the commission’s management.
According to the Commission, the circular is made pursuant to Section 13(u) of the Investments and Securities Act (ISA), 2007 and Schedule 1, Part D of the SEC Rules (Registration Fees, Minimum Capital Requirements, Securities and others) which empower the Securities and Exchange Commission (SEC) to levy, among others, fees on transactions relating to investments and securities business in Nigeria.
Specifically, the Circular indicated that Capital Market Operators (CMOs) and stakeholders generally were notified that a regulatory fee structure on secondary market transactions on Bonds will take effect from January 1, 2022 and Secondary market transactions on Bonds shall include bond transactions executed on a Securities Exchange (Exchange), reported by voice or by any other means to an Exchange as having being transacted thereon or of which the information of the transaction details are featured on the Exchange’s platform for purposes including but not limited to onward transmission to a Depository for settlement, price discovery and corporate disclosure.
It further stated that by this fee structure, the SEC would charge 0.025% of the total value of all secondary market transactions on Bonds, while the Securities Exchange on which the transaction occurs will charge an amount not exceeding 0.025% of the total value of secondary market transactions on Bonds while Bond transactions by Dealing Members will attract a single regulatory fee of 0.0001% of the total value of the secondary market transactions on Bonds, and are exempt from the 0.025% fee charge earlier stated.
According to the Commission, the circular supersedes previous directives given by it on the subject.
Also, the Commission informed all Capital Market Operators (CMOs) and the general public that the annual renewal of Registration of CMOs for the year 2022 would commence from 1st January, 2022.
The SEC stated that in line with the Commission’s Rules & Regulations, all CMOs should complete the process of renewal of registration for 2022 on or before 31st January, 2022 through its renewal of registration portal – www. eportal.sec.gov.ng
