SEC urges securities firms to avoid cut in fees
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The Securities and Exchange Commission is warning securities companies not to offer unusually low trading fees, to avoid intense competition that could hurt the securities industry.
In the past, some firms have offered low fees that might not have reflected their actual operating costs. This had the potential to stir intense competition that could eventually hurt the securities industry as the quality of service rendered to clients and investors could be affected, said Rapee Sucharitakul, secretary-general of the SEC.
Hence the SEC has requested that securities companies set fees that will ensure quality service and their own long-term business sustainability and profitability.
