KUALA LUMPUR (Feb 16): Malaysian stockbrokers are reviewing proposals by the Securities Commission (SC) to revamp its fee structure and to potentially impose a levy on revenue from their activities.

The review is focused on potential impact on the industry and investors, the Association of Stockbroking Companies Malaysia said in a statement. The aim is to ensure any changes are fair and transparent as well as contribute to a healthier and more vibrant market, it said.

“We are currently conducting a thorough review,” the association, which represents 29 stockbrokers nationwide, said in response to a request for comment from The Edge.

The statement comes on the heels of the publication of the Feb 17-23 edition of The Edge weekly that reported a plan by the SC to restructure its fees and tack on a levy of up to 1.5% on revenue from regulated activities generated by the companies.

This covers gross revenue “directly or indirectly derived as a result of holding a licence” for activities such as dealing in bonds, brokerage income including platform fee, underwriting fee and other fees and commission, according to a document sighted by The Edge.

“As an industry association representing Malaysia’s stockbroking community, we fully support the SC’s vital role in maintaining a robust and dynamic capital market,” the association said. “We recognise the need for adequate funding for SC’s crucial oversight and regulatory functions.”

The planned revision follows the SC’s largest net operating deficit in at least a decade, totalling RM54.64 million in 2023.

The SC is self-funded and there has been no change in the framework on levies and fees charged by the statutory body for more than 30 years.

Other sources of income for the SC include penalties for failing to comply with provisions or conditions, and recovery of investigation and proceedings costs that are recognised at a point in time, among others.

The Edge has also requested comments from the Malaysian Investment Banking Association and the Federation of Investment Managers Malaysia, both of which have yet to respond.