CMOs to pay regulatory fee on bonds by 2022—SEC

Capital Market Operators (CMOs) will from Jan. 1 begin payment of regulatory fees on bonds for secondary market transactions, the Securities and Exchange Commission (SEC) says.

A circular by the management of the Commission in Abuja on Thursday, said it would charge 0.025 per cent of the total value of all secondary market transactions on bonds.

SEC said that the Securities Exchange on which the transaction occured would also charge an amount not exceeding 0.025 per cent of the total value of the transaction.

According to the Commission, secondary market transactions shall include bond transactions executed on a Securities Exchange (Exchange), reported by voice or by any other means to an Exchange.

“It shall be reported as having being transacted of which the details of the transaction are featured on the Exchange’s platform for onward transmission to a depository for settlement, price discovery and corporate disclosure.

“Bond transactions by dealing members will attract a single regulatory fee of 0.0001per cent of the total value of the market transactions, and are exempt from the 0.025 per cent fee charge earlier stated,” SEC said.

The Commission explained that the circular was made pursuant to Section 13(u) of the Investments and Securities Act (ISA), 2007 and Schedule 1, Part D of the SEC Rules.

The Commission also informed CMOs and the public that the annual renewal of registration for the year 2022 would commence from Jan. 1.

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