IDM points to deteriorating condition of domestic brokerage houses

The condition of domestic brokerage houses and offices is deteriorating drastically. It’s being weakened by, among other things, excessive regulatory costs and high fees for the exchange and billing infrastructure, the management of the Chamber of Brokerage Houses (IDM) wrote in a letter to the prime minister.

“Domestic brokerage houses and offices play a key role in gaining funds for development for the most innovative and dynamic Polish companies from the small and medium-sized enterprise sector ... Meanwhile, the national brokerage industry has, for the last five years, been recording losses on its core business which is crucial for servicing investors and acquiring capital for development, whereas infrastructural institutions as well as other participants in the financial market, such as banks and investment funds, have been recording increasing profits,” the letter reads.

The industry last year suffered a PLN 215 million loss on core operations. In the first quarter of this year, the loss amounted to almost PLN 66 million, compared to PLN 37 million in Q1 2018.

(PAP)