"The SET tried to find a solution to this problem with input from the Association of Securities Companies and member companies resolution and has, as a result, finally decided to adjust this regulation. The decision is based on the principle that the fees of marketing officers will not be lowered. As a result, marketing officers in incentive scheme will receive 27.5% of the commission fees instead of 25%. They will be allowed to receive a monthly salary of no more than 15,000 baht. For marketing officers who have been with a company for more than 6 months may have their salaries adjusted up to a ceiling of fifty percent of the six-month average of the incentive. Previously, there was no rule.
In addition, commission payments will now be on a monthly basis instead of once every three months," Mr. Chavalit said.
Marketing officers in the salary based system will have a salary limit of 20,000 baht, a change from the previous regulation where there was no rule. Their salaries may be adjusted every six months. Bonuses must not exceed two months' salary annually, except in the case that, when added to their salary, it does not exceed 25% of the total commission each broker can attain. Bonuses must be paid no more than twice a year or paid at the same time as other employees. The SET will need to seek the Securities Exchange Commission's (SEC) approval before implementing these new regulations.
Mr. Chavalit added, "Adjusting these regulations will allow member companies to consult with their marketing officers before implementation. It is another option for member companies that will allow marketing officers the opportunity to earn more, compared to the previous system.
The current regulation allows member companies two types for rewarding their marketing officers. The first one was to pay commission according to trading volume as long as it didn't exceed 25% of the commission fee that each marketing officer can attain in a month. Part of this had to be in the form of a monthly salary and each payment had to be made no less than three months apart. The second was to reward marketing officers with a monthly salary. Marketing officers in this scheme received a monthly salary plus a bonus not more than twice a year.
Moreover, the Board had a resolution after reviewing the SET's report on Roynet Plc, a listed company on the Market for Alternative Investment (MAI) that had sent its financial statement (the third quarter ending September 30, 2002) which did not certified by its auditor to the SET. Later, its performance turned from net earnings to a net loss. Moreover, the SET's investigation found that executives of the company had sold down their shareholdings before the revised earnings report was released. The SET, therefore, forwarded all the documents concerning the case to the SEC on January 15, 2003 for further action.
"The SET's Board of Directors has paid special attention to the Roynet Plc case and has decided to increase the information disclosure procedures regarding listed companies' financial statements. The Board has decided the SET should implement measures to warn investors in the case that the auditor decides to withhold his/her opinion, or rule the earnings report inaccurate. The SET will put up a NP sign (which shows that the SET is awaiting more information from the listed company), an H (suspend trading for no more than one trading session or a SP (temporary suspend trading), until the company clarifies the situation and submits a revised earnings report to the SET. Investors are urged to pay more attention to listed companies' earnings reports. This new measure should be implemented for the fourth quarter earnings report period or the 2002 final earnings report, due respectively in February and March," Mr. Chavalit said.
The SET chairman of the Board concluded: "To protect individual shareholders of a listed company, the SET's Board, authorized by Section 172 of the Securities and Exchange Act B.E. 2535, has ordered Roynet to hold a shareholders' meeting within a month if it has not already announced a shareholders' meeting by February 7, 2003."
