ASHON demands higher stockbroking fees
The Association of Securities Dealing Houses of Nigeria is seeking an upward review of the stockbroking fees, which it described as static over the years and the lifting of the suspension on margin trading.
The demand was made in a statement made available to our correspondent on Wednesday, which indicated that ASHON’s Chairman, Sam Onukwue, had raised the matter at the annual general meeting of the association.
The stockbroking fee had remained at 1.35 per cent for years, he noted.
Onukwue said that the association was working closely with the capital market regulators to address the issue of static stockbroking fees and the need to re-introduce margin trading for the mutual benefits of stockbroking firms and the stock market.
He stated that margin trading had been suspended due to abuse and that had crippled access to liquidity for many stockbroking firms, making it difficult for them to take advantage of emerging opportunities in the market.
He said, “The fees chargeable for stockbroking transactions have remained static for many years, despite the continuous rise in the inflation rate. The stockbroker’s income is limited to a ceiling of 1.35 per cent for years. The association, after rigorous market research, has written a formal request to the SEC for an upward review of the fees, specifying a floor and a ceiling, including all other issues around stockbroking income, including the use or misuse of Vending Agreements lately.
“The association has made representations to the regulatory authorities for the reintroduction of margin trading. The issues at stake are the exclusion of banking stocks in the securities to be traded as well as the need to update the rules, which was at the behest of the CBN.
The association has since the NGX announced its capital raise by way of rights engaged the board on the status of the two per cent Claims Reserve Shares provided for in the Scheme of Arrangement of the demutualisation. The exchange has committed to a transparent resolution of the issues before the rights offer opens. We will update members accordingly.”
The ASHON boss added that the body had strengthened its relationship with the Institute of Capital Market Registrar to create a seamless interface between its members and registrars.
“It has helped to resolve operational issues between our members and the registrars.
“The association has continued to make progress against all odds. We are determined to survive, and our faith will see us through. I greatly appreciate the efforts of members of the governing council and committees, as well as all our supportive members, for your selfless services during the year.
“We appreciate all members of the capital market community, the trade groups, exchanges, and the apex regulator. We have had such cordiality in our relationship. We look forward to an exciting future for our members and to a more robust relationship with all stakeholders in years ahead,” said Onukwue.
