diff --git a/tools/test_api.py b/tools/test_api.py
index aab28a4db2..a485fb99bb 100644
--- a/tools/test_api.py
+++ b/tools/test_api.py
@@ -2077,8 +2077,9 @@ def find_tests(base_dir, target_name, toolchain_name, app_config=None):
     commons = []
 
     # Prepare the toolchain
-    toolchain = prepare_toolchain([base_dir], None, target_name, toolchain_name,
-                                  silent=True, app_config=app_config)
+    toolchain = prepare_toolchain(
+        [base_dir], base_dir, target_name, toolchain_name, silent=True,
+        app_config=app_config)
 
     # Scan the directory for paths to probe for 'TESTS' folders
     base_resources = scan_resources([base_dir], toolchain)
diff --git a/tools/toolchains/arm.py b/tools/toolchains/arm.py
index a555defb94..72b277d340 100644
--- a/tools/toolchains/arm.py
+++ b/tools/toolchains/arm.py
@@ -233,11 +233,6 @@ class ARM(mbedToolchain):
         cmd_pre = self.ld + args
         cmd = self.hook.get_cmdline_linker(cmd_pre)
 
-        # Create Secure library
-        if self.target.core == "Cortex-M23" or self.target.core == "Cortex-M33":
-            secure_file = join(dirname(output), "cmse_lib.o")
-            cmd.extend(["--import_cmse_lib_out=%s" % secure_file])
-
         if self.RESPONSE_FILES:
             cmd_linker = cmd[0]
             link_files = self.get_link_file(cmd[1:])
@@ -363,12 +358,17 @@ class ARMC6(ARM_STD):
 
         if target.core == "Cortex-M23" or target.core == "Cortex-M33":
             self.flags['common'].append("-mcmse")
-        
+
+        # Create Secure library
+        if target.core == "Cortex-M23" or self.target.core == "Cortex-M33":
+            build_dir = kwargs['build_dir']
+            secure_file = join(build_dir, "cmse_lib.o")
+            self.flags["ld"] += ["--import_cmse_lib_out=%s" % secure_file]
         # Add linking time preprocessor macro __DOMAIN_NS
         if target.core == "Cortex-M23-NS" or self.target.core == "Cortex-M33-NS":
             define_string = self.make_ld_define("__DOMAIN_NS", 1)
             self.flags["ld"].append(define_string)
-            
+
         asm_cpu = {
             "Cortex-M0+": "Cortex-M0",
             "Cortex-M4F": "Cortex-M4.fp",