Remisiers Association To Seek Fresh Avenue To Standardise Brokerage Fee

8 Muharram 1433 Hijrah

By Santhia Panjanadan

 KUALA LUMPUR, Dec 3 , 2011 - The Remisiers Association of Malaysia (Persama) will continue to seek avenues to standardised transaction cost in order to manage irregular stock price behaviour.

President Sam Ng Soon Lee said the absence of a standardised brokerage fee was one factor that prolonged capital flow bottleneck and loss of confidence among the investing public.

Persama and the Association of Stock Broking Companies had on June 13 agreed on a standardised transaction cost but this was verbally turned down by the Securities Commission.

"We disagree with the current method of brokerage liberalisation," he told Bernama after the association's annual general meeting here today.

At present, the fee structure was to the advantage of local and foreign fund managers and to the disadvantage of retail participants.

"If trading participants believe the current rate is too high, then how low do they want the fee to be?.

"It is unfair to go to zero rate to manage listed companies price volatility as it would result in malpractices and loss of confidence," he added.

 Source- BERNAMA