SEC Reminds Fund Managers of Regulatory Fees Payment

January 3, 2022
Pension Fund Managers

By Aduragbemi Omiyale

Fund managers operating in Nigeria have been reminded by the Securities and Exchange Commission (SEC) of the annual supervisory fees they are expected to pay to the agency.

In a circular issued at the weekend, the commission said the fees are to be paid in full on or before January 31, 2022, as failure will attract sanctions.

“The commission hereby draws the attention of all registered fund/portfolio managers to SEC Rule on annual supervision fees for Collective Investment Schemes (CIS) and regulatory fees for discretionary and non-discretionary funds/portfolios issued on January 21, 2021, and the amendment thereto issued on December 20, 2021,” a part of the notice said.

The agency stressed that the payment for the 2021 annual supervisory fee must be based on the value of Net Asset Value (NAV) as at December 31, 2021, and the annual regulatory fee for discretionary and non-discretionary funds/portfolios.

According to the circular, the annual supervisory fee for CIS under management “shall be 0.2 per cent of the Net Asset Value (NAV) of CIS under management and be computed and accrued daily for each CIS.”

It further stressed that “all fund managers shall pay the annual supervisory fee to the commission not later than January 31 of every year and that the payment for 2021 annual supervisory fee shall be based on the value of NAV as at December 31, 2021.”

On annual regulatory fees for discretionary and non-discretionary funds/portfolios, the SEC stated that every fund/portfolio manager “shall pay not later than January 31 of every year annual regulatory fees to the commission.”

“The fees are 0.25 per cent of the NAV of all discretionary and non-discretionary funds/portfolios (other than CIS) under the management of the fund/portfolio manager for retail investors and 0.01 per cent of the NAV of all discretionary and non-discretionary funds/portfolios (other than CIS) under the management of the Fund/Portfolio manager for qualified investors.

“Accordingly, funds/portfolio managers should note that late payment will attract a penalty of N100,000 and a daily sum of N5,000 for every day of default, or such other stiffer penalty as the Commission may determine,” it added.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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