The SEC has reviewed the regulations related to private fund management services to be aligned with international standards and be suitable for the current service models where some asset management companies generally offer private funds in the form of a standard portfolio. This business model provides clients with a selection of pre-defined investment portfolios without being customized to each client’s investment preference*. This approach aims to build investor confidence in private funds and supports the long-term development of the private fund industry. It also ensures that investors have sufficient information before making investment decisions. 

In September 2024, the Capital Market Supervisory Board Meeting passed a resolution approving the proposal for amending the private fund management regulations to be aligned with the current private fund models. The SEC is therefore conducting this public hearing on the proposed principles and draft amendments with the key points as follows:   

       (1) To establish additional guidelines for designing investment policies and offering private fund services, with a primary focus on the clients' best interests in accordance with the private fund governance;  

(2) To require asset management companies offering standard portfolio private funds to disclose information related to the investment policies and service terms for each investment policy. This includes compiling a list of specific information such as the investment policy and corresponding investment strategies, investment allocation, and statistical data on the investment policy, etc. This information shall be disclosed publicly, reviewed and updated at least on a monthly basis; 

  (3) To amend the regulations related to performance calculation methodology and performance presentation of private funds; 

  (4) To require asset management companies to deliver the counterparty contracts of private fund management to clients.    

The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1027. Stakeholders and Interested parties are welcome to submit comments and suggestions via the SEC website or email: suppawit@sec.or.th, vathunyur@sec.or.th or jirapathara@sec.or.th. The public hearing ends on 12 December 2024.  

Remark: 

* A standard portfolio private fund is a private fund in which the asset management company publicly establishes a pre-defined investment policy and key investment information in advance to provide private fund services to investors.