By Nkiruka Nnorom

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

With the development, transaction fees in the secondary bonds market would be 0.025% of the total value of the trades chargeable by the SEC, while the securities exchange on which the transaction occurs would charge an amount not exceeding 0.025% of the total value.

READ ALSO:Coronation Merchant Bank holds 3rd edition of its Interactive Session Series themed Nigeria moving beyond Covid-19 – Opportunities for Investors

SEC further explained that dealing members would attract a single regulatory fee of 0.0001% of the total value of the secondary market transactions on bonds, and are exempt from the 0.025% fee charge earlier stated.

In circular communicating this development, the Commission 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.

“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.”