Legislators criticised the securities watchdog for refusing to reduce the levy on share trading or licence fees, even though it made a huge surplus last year.
Chim Pui-chung, legislator for the financial services sector, asked Securities and Futures Commission chairman Martin Wheatley at a financial affairs panel yesterday why the SFC had refused to cut fees for investors and brokers.
'The government distributes goodies to the public when it has large reserves,' Mr Chim said. 'The SFC should follow the government's practice. The law also states that the commission should consider lowering the levy when its surplus reaches a certain level.'
The legislator proposed that the 0.004 per cent levy for equity trading be lowered to 0.003 per cent and the licence fee charged brokers and fund managers 'also be cut'.
Strong stock market turnover in recent years has given the SFC a windfall income, boosting its surplus to about HK$3.82 billion by the end of March, or 6.5 times its annual operating expenses.
Under the law, the commission can apply to the Financial Secretary to cut the levy if the surplus is double its annual expenses.
