Securities firms will no longer be permitted to pay traders interest on unused funds in their accounts from June 30 2024 the State Securities Commission has said, The Investor is reporting. The argument, according to this article, is that securities firms are essentially acting like banks but it doesn’t make clear why this is a problem.
On the contrary, this may act as a deterrent for investors, particularly foreign firms who will theoretically need to repatriate their profits, reinvest them basically immediately, or leave them in an account where they receive no interest.