The Securities and Exchange Commission (SEC), has reminded all fund managers to ensure full payment of the annual supervisory fee on or before January 31st, as such fees become due from January 1st. 2022 and must be made 2022.
SEC in a circular, weekend, said: “The Commission hereby draws the attention of all registered Fund/Portfolio Managers to the 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.”
The Circular said the payment for 2021 annual supervisory fee shall be based on the value of Net Asset Value (NAV) as at December 31st 2021 and Annual Regulatory fee for Discretionary and Non-Discretionary Funds/portfolios.
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.
According to the Circular, Annual Supervisory fee for Collective Investments Schemes (CIS) under Management shall be 0.2% of the Net Asset Value (NAV) of CIS under management and be computed and accrued daily for each CIS.
The Circular also stipulates that all fund managers shall pay the annual supervisory fee to the Commission not later than 31st January of every year and that the payment for 2021 annual supervisory fee shall be based on the value of NAV as at December 31st 2021.
Also, every Fund/Portfolio manager shall pay the Annual Regulatory fee for Discretionary and Non-Discretionary Funds/portfolios not later than January 31st of every year.
The circular said further: “The fees are 0.25% 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% 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.”
