SEC Secretary-General Pornanong Budsaratragoon said: “The SEC emphasizes the importance of greater investments with sustainability impact for which responsible capital markets are best placed to provide. Capital market plays a significant role in the economy and is one of the key drivers of sustainable growth in Thailand. To further support sustainable investment, we have extended the fee exemption period for the applications for approval of the establishment and modification of SRI Funds, submitted during 1 January – 31 December 2024. This short-term measure aims to support asset management companies who intend to manage SRI Funds and, hence allow more funding to be allocated to public and private sector-led projects underway to promote sustainable development, reduce carbon emissions, or reverse environmental damage, in line with the 20-Year National Strategy and the United Nations Sustainable Development Goals (SDGs). The extension will become effective from 1 January 2024.”  

This extension of the fee exemption period is part of the SEC’s action plan under the SEC Strategic Framework, which aims to build a sustainable capital market ecosystem and promote responsible investment among asset management companies. In addition, this initiative encourages the disclosure of sustainability-related information of sustainable fund according to SRI Fund standards which helps to reduce the risk of greenwashing as asset management companies have to disclose how they allocate funding towards economic activities that consider environmental, social and governance (ESG) factors, both within and outside the Thai capital market.  

______________________

Remarks:

* Sustainable and Responsible Investing fund (SRI Fund) aims to enhance disclosure on the ESG-related features of mutual funds to assist investors’ understanding and assessment of whether the mutual funds meet their investment needs and mitigate the risk of greenwashing. 

** The fee exemption applies to the 100,000 Baht application fee for approval of the establishment of a new SRI Fund, and the 5,000 Baht application fee for approval of the modification of a mutual fund to become SRI Fund.