Annual dues: SEC threatens to punish portfolio managers for late payment

The Security and Exchange Commission (SEC), Nigeria’s foremost capital market regulator, has threatened capital market operators to either pay their annual regulatory dues or face the wrath of the commission.

It stated that the fee, which becomes due on January 1, 2022 with January 31, the last day of the month as its deadline, will attract N100,000 fine for defaulting and further accrue N5,000 daily punishment for everyday after the set deadline.

In a circular obtained by Business Metrics, the Commission reminded operators in the capital market that it is time for them to fulfill payment of their annual regulatory and supervisory dues for the year 2021.

In the circular titled “Circular To All Registered Fund/Portfolio Managers On Annual Regulatory And Supervision Fees”, SEC recalled that the rule on the dues was issued on January, 21 2021 and the amendment thereto issued on December 20, 2021

The rule, in its Section A, provides that on Annual Supervisory fee for Collective Investments Schemes (CIS) under Management, 0.2 per cent of the Net Asset Value (NAV) of CIS under management will be paid, computed and accrued daily for each CIS.

It further reads thus: “All fund managers shall pay the annual supervisory fee to the Commission not later than 31st January of every year. The payment for 2021 annual supervisory fee shall be based on the value of NAV as at December 31st 2021.”

The section B of the rule, focusing on Annual Regulatory fee for Discretionary and Non-Discretionary Funds/portfolios also states that every fund/portfolio manager shall pay not later than 31st January of every year annual regulatory fees.

Meanwhile, the fee for this category is pegged at 0.25 per cent of the NAV of all discretionary and non-discretionary portfolios other than CIS under the management of the fund or portfolio manager for retail investors and 0.1 per cent for qualified investors.

“Accordingly, Funds and portfolio managers should note that payment of the said fees become due from the 1st January 2022 and full payment must be made on or before 31st January 2022.

“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,” the SEC said.