Regulatory Alerts2019-01-01
Guidelines on Market Levies for 2019
The Securities and Exchange Commission mandates fixed annual market operator levies ranging from GHS 2,000 to GHS 20,000 for fund managers and other market operators throughout the 2019 financial year. The guidelines establish a 0.15 percent transaction levy on share purchases and sales, alongside a 0.01 percent bond trade commission apportioned among market participants, and impose a 0.003 percent depository levy on securities face value. Market operators must settle annual levies by the end of the first quarter, while transaction and depository fees are due within ten to fifteen working days post-transaction, with non-compliance subject to regulatory sanctions under the Securities Industry Act.
1 GUIDELINES ON MARKET LEVIES FOR 2019 ‘Ensuring Investor Protection’ THE SECURITIES AND EXCHANGE COMMISSION SEC/GUI/001/01/2019 1.0. Preamble These Guidelines are issued by the Securities and Exchange Commission (hereinafter referred to as “the Commission”) pursuant to section 15 of the Securities Industry Act, 2016 (Act 929) for the payment of market levies. 2.0. Applicability These guidelines shall be applicable to Fund Managers and other Market Operators for the financial year 2019. 3.0. Market Operators’ Levy Market Operators Levy (GHS) Stock exchange 20,000 Commodity Exchange 10,000 Securities Depository Primary Dealers 15,000 15,000 Custodians 15,000 Issuing Houses 15,000 Trustees 10,000 Fund Managers 5,000
2 Broker Dealers 3,000 Investment Advisors 3,000 Registrars 3,000 Commodities Warehouse Operators 2,000 3.1 Mode of payment The Market Operator shall pay the required levy by the end of the first quarter of the year either in full or in a maximum of three installments. 4.0 Transaction levy (1)The transaction levy shall be paid by the purchaser and seller ofsecurities. (2)The transaction levy shall be charged on the purchase and sale asfollows: (a) For shares, 0.15% of the total transaction value; (b) For Bonds, the regulators’ commission of 0.01% of the nominal value of the trade shall be apportioned asfollows: (i) Ghana Fixed Income Market, 50/100 of the 0.01%; (ii) Central Securities Depository Ltd., 30/100 of the 0.01%; and (iii) Securities and Exchange Commission, 20/100 of the 0.01%. 4.1 Mode of payment The transaction levy shall be paid within ten working (10) days after the end of the month in which the transaction was effected. 5.0 Depositorylevy. Securities issued in the depository shall attract a levy of 0.003% of the face value of the securities.
3 5.1 Mode of payment The depository shall pay the required levy within fifteen working (15) days after the end of the month in which the transaction was effected. 6.0 Sanctions for non-payment of Market Levies i. The Commission shall exercise its powers under section 209 (4) of the Securities Industry Act, 2016 (Act 929). Signed by Securities and Exchange Commission Date: 29th January, 2019