FRA lowers regulatory fees on stock market trades to offset increased stamp tax
FRA to cut regulatory fees on stock market trades to offset increased stamp tax: The Financial Regulatory Authority (FRA) has approved a small cut to fees on stock market transaction for brokerage houses and custodians, Al Mal reports. The change will reduce fees brokerage firms pay to 0.01% of the transaction value, down from 0.02%, while providers of custodial services will only be required to pay a fee equivalent to 0.005% of the value of its client’s portfolio, down from 0.011% previously. Proceeds from the fees are typically used to fund the operations of the FRA, the EGX, Misr Central Clearing, Depository and Registry (MCDR) and the investor bailout fund. The fee reduction will only affect the bailout fund’s portion of the proceeds, according to FRA Deputy Chairman Khaled El Nashar. The fee cuts are being positioned as part of a gesture to ease the sting of the annual rise in stamp tax on EGX trades, which increased to 0.15% in June and will rise further to 0.175% next year. The move has been in the works since May.