SFC notches up record surplus of $61m as turnover on stock market climbs

Rising sharemarket turnover generated a $61 million surplus for the Securities and Futures Commission (SFC) in the year to March - its highest annual surplus and six times the figure recorded for 1995-96.

The watchdog's 1996-97 annual report stated the latest surplus compared with $10 million in the previous year and took the SFC's accumulated reserves to $644.88 million at the end of March, up from $592 million a year earlier.

The reserves figure was almost double the SFC's estimated operating expenditure of $339 million for this year.

The surplus increase was due mainly to a jump in income earned from the levy imposed on share transactions during a year in which monthly turnover ranged from roughly $60 billion in June last year to almost $250 billion in January.

Levy income reached $217 million, up from $134 million previously. Income from the 0.013 per cent levy was shared between the SFC with 0.006 per cent and the stock exchange with 0.007 per cent.

The high surplus and reserves were likely to pressure the SFC to reduce the transaction levy - a move the Government has asked the SFC and stock exchange to consider.

The SFC is expected to respond to the Government's call at the end of July.