SEC scraps minimum stockbroker commission

In its continuing efforts to boost capital market activity, the Securities and Exchange Commission (SEC) has removed the minimum amount of commission that stockbrokers may charge their customers.

- RICHMOND MERCURIO

The SEC issued on April 16 a memorandum circular providing for the removal of the minimum commission charged by Philippine Stock Exchange (PSE) stockbrokers.

With the new rule, brokers are allowed to set their own commission schedule for transactions with their customers, without the limitations of a prescribed regulatory minimum commission.

"Lower transaction costs are vital in encouraging the public to invest their money in the stock market. The removal of the minimum stockbroker's commission seeks to address this, and hopefully bring out more retail investors and spur trading activity," SEC chairperson Emilio Aquino said.