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SEC: Capital market operators to pay regulatory fee on bond transactions from Jan 1

SEC: Capital market operators to pay regulatory fee on bond transactions from Jan 1
December 17
10:10 2021

The Securities and Exchange Commission (SEC) says it will charge a regulatory fee on fixed income (bonds) transactions at the secondary market with effect from January 1, 2022.

The development was contained in a circular dated December 15 and signed by the management of SEC.

According to the circular, SEC will charge 0.025 percent of the total value of all secondary market transactions on bonds.

It added that the securities exchange on which the transaction occurs will charge an amount not exceeding 0.025 percent of the total value of secondary market transactions.

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However, bond transactions by dealing members would attract a single regulatory fee of 0.0001 percent of the total value of the secondary market transactions on bonds and are exempt from the 0.025 percent fee earlier stated.

“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 reads.

“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.

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“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 commission stated that the circular supersedes previous directives.

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