Accounting Alerts

Removal of the minimum commission charged by PSE Stockbrokers​

This Accounting Alert is issued to circulate Securities and Exchange Commission (SEC) Memorandum Circular (MC) No. 7-2024 dated April 17, 2024, which covers the removal of the minimum commission charged by PSE Stockbrokers​.

Rationale

Republic Act No. 8799 or the Securities Regulation Code (SRC), grants the SEC the power to regulate and supervise the various capital market professionals and their products, services, and other market-related activities. Considering that online trading platforms are being utilized by trading participants, thereby resulting in a more cost-efficient transaction. Hence, the removal of any prescribed minimum commission will allow brokers to set their own commission schedule without the constraint of a prescribed regulatory minimum commission.

Resolution made by Commission

The Commission hereby resolves to remove the minimum amount of commission to be charged by trading participants, including brokers using online trading platforms and those performing traditional execution of trades, is deemed consistent with public interest and aligned to the objective of boosting the volume of trades in the stock market. It likewise encourages investors to actively participate in the market and allow them to engage the services of a broker of their choice based on cost preference.

Effectivity

This Circular shall take effect immediately upon completion of its publication in two newspaper of general circulation.

 

Please see attached circular for further information.