SEC to Charge 0.025% Regulatory Fee on Fixed Income Transactions from Jan 1

Kayode Tokede

The Securities and Exchange Commission( SEC) yesterday said it will commence 0.025 per cent regulatory fee on fixed income (Bonds) secondary market transactions effective from January 1, 2022.

The Commission in circular said, “This 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”.

The Circular stated that 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 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.”

The Circular also stated that, “by this fee structure, the SEC will charge 0.025per 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 0.025per cent of the total value of secondary market transactions on Bonds while Bond transactions by Dealing Members will attract a single regulatory fee of 0.0001per cent of the total value of the secondary market transactions on Bonds, and are exempt from the 0.025per cent fee charge earlier stated.”

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

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

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