Brokerages allowed to retain 75% of investors' deposit interest
A Consolidated Customers' Account is a separate bank account maintained by stockbrokers to hold unused funds from their clients' beneficiary owner accounts
Brokerage firms are allowed to receive 75% of the interest earned in the Consolidated Customer Account, while the remaining 25% must be deposited into the Investors' Protection Fund, which will be used to safeguard investors.
The Bangladesh Securities and Exchange Commission (BSEC) made the decision at a meeting today (27 May), according to a press release.
A Consolidated Customers' Account is a separate bank account maintained by stockbrokers to hold unused funds from their clients' beneficiary owner accounts.
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A senior stockbroker told TBS that previously, brokerage firms could use the interest as their income, but the Shibli Rubayat Ul Islam led commission issued a directive in 2020 to disburse the interest to the clients. The Shibli-led commission made the decision without consulting the market intermediaries.
