Main slices into staff

Press, 15 September 1988, Page 38

Main slices into staff

PA Auckland Tough trading has forced Main Stockbrokers to slash staff by 25 per cent and switch from private clients to the corporate sector. The redundancies made on Friday involved three client advisors from a total staff of about 15. One Main Stockbrokers private client has complained about the firm increasing its minimum fee 275 per cent from $4O to $l5O. The fee change introduced since Monday removes Main Stockbrokers from a shrinking list of firms who still cater for small clients.

Before the fee change, Main Stockbrokers was competitive in this market niche with Buttle Wilson and Morrow and Benjamin, which both had $5O minimum fees. Buttle Wilson this week also raised its minimum brokerage charge. However, it boosted the threshold to just $75. Main Corporation’s manag-

ing director, Mr David Booth, said although the stockbroking arm was set up from a small client base those customers were proving to be very costly to service. The stockbroking arm was developed from purchases of existing Whangarei-based Spicers Sharebrokers and Wellington-based Kennedy’s Sharebrokers.

Low Stock Exchange turnover and high costs, including recently introduced broker-to-broker charges, had forced the changes. Mr Booth said the moves were not a snub to Main Stockbrokers’ small clients but rather a necessity in current market conditions. Main Corporation is no longer linked to Pacer Kerridge and is now 65 per cent owned by Yalfa Investments, which in turn is controlled by Australian listed investment company, Markland House. Of the remaining shares, about 15 per cent are held by staff and the rest by the public.