SEC Commences Regulatory Fee on Fixed Income Transactions Jan 1

The securities and Exchange Commission is to commence regulatory fee on fixed income (Bonds) secondary market transactions with effect from January 1, 2022.

This was contained in a Circular dated December 15, 2021 and signed by the Management of SEC.

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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).

The regulation empowers SEC to levy, among others, fees on transactions relating to investments and securities business in Nigeria.

The Circular stated “Capital Market Operators (CMOs) and stakeholders generally are hereby 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.

“The SEC will charge 0.025 per cent 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 per cent 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 per cent of the total value of the secondary market transactions on Bonds, and are exempt from the 0.025 per cent fee charge earlier stated.”

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The Commission stated that the circular supersedes previous directives given by the Commission on the subject.

Also, the Commission informed all Capital Market Operators (CMOs) that their annual renewal of Registration for the year 2022 will commence from 1st January, 2022.

The SEC stated that in line with the Commission’s Rules & Regulations, all CMOs are to complete the process of renewal of registration for 2022 on or before 31st January, 2022.

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