From the first day of the new year, 2022, a 0.025 percent regulatory fee on fixed income secondary market transactions on bonds will be charged by the Securities and Exchange Commission (SEC), it has notified capital market operators and general stakeholders.
The capital market regulator, in a circular issued on Thursday, disclosed that the transaction fee will be charged on the total value of all secondary market transactions on bonds while bonds transactions by dealing members will attract a single regulatory fee of 0.0001 percent on the total secondary market transactions on bonds. It said the 0.0001 percent charged on dealing members is exempt from the 0.025 percent fee charged by the Securities Exchange.
“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.
“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 been 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.”
By this fee structure, the regulator noted that, “The SEC will charge 0.025 percent 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 percent 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 percent of the total value of the secondary market transactions on Bonds, and are exempt from the 0.025 percent fee charge earlier stated.”
Also, SEC said the newly published circular supersedes previous directives given by the commission on the subject.
Meanwhile, 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.
