The need for a new code comes from the fact that some foreign-invested securities firms have tried to offer free trading fees for investors and pay high salaries to attract high-quality employees, causing unfair competition in the market.
Securities firms are concerned that without a new code, companies with strong support from big financial institutions will cause some instability in the securities market.
If foreign-invested firms are able to keep their trading fees at zero percent, local brokerages will have to cut their rates. Therefore, they worried their main income from the collection of trading fees will be hampered.
Under a Circular by the Ministry of Finance in 2018, the maximum trading fee for share and fund certificate transactions is only 0.5 percent of the value of the deal./.
