HSSC To Be the Third Firm to Cut Brokerage Service

Pham Hong Son, head of the State Securities Commission’s (SSC) Fund Management Division said withdrawing brokerage service is a bold action by securities companies amid current market conditions. “The SSC’s stock market restructuring plan also targets to encourage securities companies to cut business activities that not profitable to them” Son told local online newspaper Dau Tu Chung Khoan (Securities Investment).

Some securities companies leaders told  the newspaper that they intended to cut some business lines amid stock market difficulties.

CEO of a securities company told the newspaper that his company’s expenses for the brokerage service were VND20 billion in 2011 plus VND2 billion custody service for Vietnam securities depositary while the company earned only VND2 billion from the services, suffering VND20 billion loss.

“We will completely restructure in 2012, though we will not stop brokerage service but we will make downsize adjustment to ensure long term existence” the CEO said.