KUALA LUMPUR: The Securities Commission (SC) is engaging with the Finance Ministry to review its fee structure after it posted a deficit last year.
Chairman Datuk Seri Dr Awang Adek Hussin said the deficit was due to a decline in average daily trading value (ADTV) to RM2.2 billion.
The regulatory body posted a deficit after tax of RM71.3 million, with total comprehensive loss at RM107.86 million.
"We are engaging the ministry to see how we can review our fee structure. It has not been changed for 30 years and (it) is too small.
"For example, investment banks pay RM2,000 (of fee) for a whole year. I think this is because we wanted to develop the market back then and we were not so concerned about fees.
"Our stock market was also doing well in the 1990's and so enough revenue was generated from duty. Money was never a concern to us," he said during the release of its annual report.
Awang Adek noted that the SC gained 90 per cent of its revenue from duties imposed on trading in the market.
"When the value is low, we do not get enough revenue. Even during the Covid-19 pandemic, we did well because the trading value was relatively high.
"Last year's value was low and we needed to generate an ADTV of between RM2.5 and RM2.6 billion just to break even," he said.
However, Awang Adek said in the first three months of the year, the ADTV stood at RM3 billion.
"If this continues for the rest of the year, there will be a healthy surplus. However, we do not know if this will change as it has only been three months," he added.
