Regulatory Alerts2020-01-01
Guidelines on Market Levies for 2020
The Securities and Exchange Commission mandates fixed annual market operator levies ranging from GHS 2,000 to GHS 20,000 for fund managers and market operators during the 2020 financial year. The guidelines impose a 0.15 percent transaction levy on share trades and a 0.01 percent bond levy apportioned across the Ghana Fixed Income Market, Central Securities Depository, and the SEC. Market operators must remit these annual and transactional charges by the end of the first quarter or within ten working days post-transaction, with non-compliance subject to SEC enforcement powers.
1 ‘Ensuring Investor Protection’ THE SECURITIES AND EXCHANGE COMMISSION SEC/GUI/001/01/2020 1.0. Preamble These Guidelines are issued by the Securities and Exchange Commission (hereinafter referred to as “the SEC”) pursuant to section 15 and 209 of the Securities Industry Act, 2016 (Act 929) for the payment of market levies. 2.0. Scope and Application These guidelines shall be applicable to Fund Managers and other Market Operators for the financial year 2020. 3.0. Market Operators’ Levy Market Operators Levy (GHS) Stock Exchange 20,000 Commodity Exchange 10,000 Securities Depository 15,000 Primary Dealers 15,000 Custodians 15,000 Issuing Houses 15,000 Trustees 10,000 Fund Managers 5,000 GUIDELINES ON MARKET LEVIES FOR 2020
2 Market Operators Levy (GHS) 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 of securities. (2) The transaction levy shall be charged on the purchase and sale as follows: (a) For shares, 0.15% of the total transaction value; (b) For Bonds, the regulators’ commission of 0.01% of the nominalvalue 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) Securities4 and Exchange Commission, 20/100 of the0.01%.
3 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 Depository Levy Securities issued and lodged in the depository shall attract a levy of 0.003% of the face value of the securities. 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 The SEC shall exercise its powers under section 209 (4) of the Securities Industry Act, 2016 (Act 929). 7.0 Revocation, Variation and Revision The SEC may revise, amend, vary or revoke these guidelines. 8.0 Interpretation Where any doubt arises about the meaning of any provision contained in these Guidelines, the same shall be referred to the SEC and the interpretation provided by the SEC shall be final 9.0 Effective date These Guidelines shall be effective from the 28th day of February, 2020 ISSUED BY ORDER OF THE SECURITIES & EXCHANGE COMMISSION (SEC) Dated the 28th February, 2020