SEC urges fund managers to pay annual supervisory fee before 31 January
Securities and Exchange Commission (SEC) Fund has reminded fund managers operating in Nigeria 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 stated 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.
The circular stated that 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 added 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 noted 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,” SEC added.
