"We've talked about it a bit but are now considering it in detail. Trading fees should be implemented fairly," said Maris.

The SET allows Thai brokerage firms to have a foreign institutional investor as an exclusive partner, granting a 40-per-cent discount on trading fees. Institutional investors are normally charged a fee of 0.25 per cent for trading, but with the privilege the fee drops to 0.15 per cent.

The privilege is granted on one condition: the foreign partner must transfer know-how to the Thai partner.

Maris said if the privilege did turn out to give an unfair advantage to asset-management firms, the SET should provide a very clear explanation. He said that with trading fees discounted for asset-management firms as well,

unit-holders would benefit from the lower cost of its funds.

Separately, ING Funds (Thailand) hopes to attract 5,000 new customers through sponsoring the Asian Football Confederation's Champions League.

It has targeted Bt180 billion worth of assets under management this year.

Meanwhile, with decreasing yields in the bond market sending a negative signal in regard to returns on life insurers' bond-holdings, the return guaranteed from life-insurance products was likely to drop, said Somphot Keitkraival, senior executive vice president and chief agency officer of ING Life Insurance.

Somphot said the yield return on 10-year bonds in April had declined to 3 per cent, from 6 per cent in April 2006. ING plans to return its focus to more traditional products.

Piyarat Setthasiriphaiboo

 The Nation