The Stock Exchange of Thailand (SET)’s Board of Governors approved changes to brokerage or agent’s fees and to marketing officers’ remuneration. Rules on brokerage fees will be applied in two periods, the first beginning on January 1, 2007, when normal trading will incur a minimum fee of 0.25% of trading turnover and internet trading fees will be 60% of the normal rate. The second period, starting from January 1, 2010, introduces a sliding scale starting with a minimum rate of 0.25% for trades less than, or equal to, THB 1 million and decreasing as the trading amount grows. The internet trading rate will be 60% of the sliding scale. In 2012 brokerage fees will be fully negotiable.
The board introduced the changes on November 22 by amending SET’s Rules and Procedures for Charging Brokerage or Agent’s Fees for the Buying or Selling of Listed Securities and Members’ Good Corporate Governance. The regulation concerning remuneration of marketing officers will also be amended. Subject to approval from the Securities and Exchange Commission (SEC), the amendments will take effect from the beginning of next year, SET Executive Vice President Mr. Suthichai Chitvanich (acting as SET Board Secretary) said.
“During the first phase (January 1, 2007 – December 31, 2009) clients trading via the Internet must do so only through their ‘cash balance’ or ‘credit balance’ accounts.
“During the second phase (January 1, 2010 – December 31, 2011), daily trading turnover between THB 1 million and THB 10 million will incur a fee of no less than 0.22%. Trades between THB 10 million and THB 20 million will be charged pro-rata at no less than 0.18%. Beyond THB 20 million, the rate will be negotiable (see table below). Internet trading will be at 60% of the normal rates,” he noted.
|
Daily
trading turnover (X) (THB) |
Brokerage
fee (%) |
Fees
for each sale (THB) |
Maximum
accumulated fees for each sale (THB) |
|
X
≤ 1 million |
≥
0.25 |
2,500 |
2,500 |
|
1
million < X
≤ 10 million |
≥
0.22 |
19,800 |
22,300 |
|
10
million < X ≤
20 million |
≥
0.18 |
18,000 |
40,300 |
|
X
>
20 million |
Negotiable |
|
|
Marketing officers’ remuneration under the current incentive scheme is paid monthly, based on turnover quantity. In the future, 25% of the incentive will be based on qualitative factors, such as investor base expansion, value added to clients’ accounts, compliance with SEC and SET rules, and cooperation in internal and external surveillance. Member companies may elect to pay incentives on a 6-monthly basis.
Salary-based remuneration to marketing officers, marketing chiefs and branch managers is unchanged. However qualitative factors, as noted, should be considered in paying bonuses.
Fees have been fixed at a minimum rate of 0.25% for normal trade and 0.20% for internet trade for three years since January 14, 2002, then extended for another two years until January 13, 2007. On November 16, 2006, SET discussed the amendments with its members and will now seek SEC approval for them.
