Securities Companies Association concerned by ‘no commission’ offer

BANGKOK, Dec 30 (TNA) – Executive directors of Thailand’s Association of Securities Companies will meet early next year to discuss impacts of the move by two securities firms to collect no commission on the excess to a trading amount of Bt20 million, according to an industry executive.

Association president Jongrak Raruaysong said the two companies had earlier agreed to collect the excess commission at a rate of 0.15 per cent, but had taken a sharp about-turn later.

He said the association will call representatives of the two companies to discuss the matter because the practice could damage the industry.

Prasert Srisuwan, president of Country Group Securities Co, earlier said the company is ready to charge no commission on the excess to a trading amount of Bt20 million for three months as offered by Siam City Securities to maintain its existing customer base.

The free commission charge is likely to increase the number of new securities portfolios by over 100 accounts from 30,000 at current. Of this, 10-15 per cent belong to customers with trading amounts of over Bt20 million.

Stock Exchange of Thailand senior executive vice president Sopavadee Lertmanuschai said the board approved an adjustment in the commission with effect from January 1, 2010 through December 31, 2011.

It covers all kinds of securities including shares, warrants, mutual funds, ETF, and property funds. (TNA)