Following the recent increase in fess charged by the Securities and Exchange Commission (SEC), which are payable by companies quoted on the securities exchanges and other entities, the management of Issuers & Investors Alternative Dispute Resolution Initiative (IIADR) has appealed to the commission, saying the current charges will hinder the expected growth in the Nigerian capital market.
The organization in a statement that was made available to Financial Edge and jointly signed by the chairman Moses Igbrude and Secretary Sebastian Udoh Esq, said they considers the increase in fees as not only astronomical and outrageous but also an attempt to stifle and hinder growth in the country at a time when the economic indices are at the lowest and the enabling environment are almost nonexistent.
According to IIADRI, some of the fees increased they pointed out are as follows
- Filing Fees for Proxy Materials: Increased from N5, 000.00 to N500, 000:00.
- Registration of a Broker: Increased from N500,000:00 to N5,000,000:00
- Registration of underwriter: Increased from N500,000:00 to N5,000,000:00
- Registration of Issuing House: Increased from N500,000:00 to N5,000,000:00
- And several other outlandish increments.
Stressing that as an organization formed to protect the companies and investors, “IIADRI, condemns this arbitrary and unilateral increase in fees and calls upon the management of SEC to revert to the status quo for the interest of Nigerian companies and their shareholders, all of whom are currently struggling to survive”.
