New Updates as SEC Proposes New Rules on CIS and Sundry Amendments for Exposure
The Security and Exchanges Commission, in a recent report, has proposed new rules on Collective Investment Scheme (CIS) and Sundry Amendments for Exposure.
In a document issued by the commission, it proposed changes on General Rules for Collective Investment Schemes (CIS), the Annual Supervision Fees for Collective Investment Schemes and on Payment of Administrative Charges for Review of Supplemental Deeds and Amendments to Sundry Agreements.
The commission also proposed changes on Sundry Agreements.
- Proposed Amendment to Rule 465(d)&(e)- Content of a Trust Deed
- Proposed Amendment to Rule497– Investment by Collective Investment Schemes in Unlisted Securities/Additional Disclosure.
- Proposed Amendment to Rule 517- Amount to be Underwritten And Rule 519- Time Amount Underwritten is to be made Available.
- Proposed Amendment to Rule 522- Valuation Report
In an effort to clarify the recent developments, the SEC has issued a statement, informing the concerned parties on further developments as a result of the proposed changes. Some of these developments would have clarify how relevant agencies can facilitate effective compliance with the new CIS Rules.
- All Fund Managers of Collective Investment Schemes are required to comply with the provisions of the new Rules and file evidence of compliance on or before September 30 2020;
- The application of the new total expense ratio and incentive fee computation takes effect from the beginning of Q3,2020, i.e. July 2020;
- Incentive fees should not be factored into total expense ratio computation and shall be assessable and payable on an annual basis;
- The Fund Managers Association of Nigeria (FMAN) shall submit acceptable benchmarks for Money Market Funds, Balanced Funds and Ethical Funds at the beginning of each year commencing Q3. 2020.
You can download a copy of the full document here: https://sec.gov.ng/category/circular/
