Improvement in Deposit Fee Rate Calculation... At Least Once Per Quarter

The method for calculating deposit fee rates paid by securities firms to investors is set to change. Going forward, direct and indirect costs will be clearly distinguished, and the cost allocation method will be standardized. Additionally, the rate calculation frequency will be improved to at least once per quarter.

On the 20th, the Financial Supervisory Service and the Korea Financial Investment Association announced that the "Model Guidelines for Calculating Investor Deposit Fee Rates" will be pre-notified within this month and enacted and implemented next month.

Until now, the costs incurred by securities firms in managing deposit fees have been divided into direct and indirect costs. However, there were differences in standards and cost allocation methods. From now on, clear and consistent criteria for classification and allocation will be applied to the payment of fees.

Furthermore, the calculation frequency of fee rates, which varied by securities firm, will be improved so that the calculation period is unified to at least once per quarter.

Along with this, internal control standards will also be established. Previously, internal control procedures differed among securities firms. Now, an internal audit committee composed of departments related to deposit fees will review appropriateness. Additionally, approval from the CEO or prior reporting will be required.

The model guidelines will be finalized next month. The comparative disclosure of deposit fee rates is expected to be implemented at the end of the year after the Korea Financial Investment Association and securities firms complete system development.

Meanwhile, considering the investor deposits amounting to 64 trillion KRW as of the end of last month, the Financial Supervisory Service and the Korea Financial Investment Association anticipate that if the deposit fee rate increases by 50 basis points, approximately 320 billion KRW in fees will be additionally paid to investors.

This content was produced with the assistance of AI translation services.