“Extending the minimum brokerage fees will provide more time for securities companies to both anticipate change, and develop more products and services. Today’s decision will also assist them to prepare for financial liberalization,” she noted.
“To improve their services, firms will be required to have at least four analysts doing fundamental research. ASCO will also be looking more closely at the turnover of marketing representatives,” said Ms. Patareeya.
A General Meeting of SET member companies is scheduled for June 21, 2006, at which SET will announce the Board’s resolution and hold a hearing to discuss implementation. Subsequently, the resolution will be submitted to the Securities and Exchange Commission for approval.
On a related matter, the remuneration of marketing representatives is now classified into two types—incentive scheme and salary based. Now, a marketing representative may receive no more than 27.5% of the total commissions he earned for his employer, or a salary plus bonus totaling no more than 25% of what he earned for his firm. The Board decided that these parameters will remain unchanged, and be extended for a further three years from January 13, 2007.