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Public hearing on derivatives investment of AI funds



Wednesday 16 April 2014 | No. 50 / 2014


 
Bangkok, April 16, 2014 ? The SEC is seeking public comment on easing rules on derivatives investment of accredited investor funds (AI funds), where all unitholders are institutional investors or high net worth individual only. To widen investors? investment choices of increasing return or creating variety and complexity of investment strategy, the AI funds will be allowed to invest in derivatives without investment limit. Nonetheless, asset management companies are required to put in place a proper risk management system for risks associated with derivatives investment and clearly disclose to investors the information on such investment. Asset management companies must, additionally, comply with rules governing derivatives investment which include rules on counterparty limit, reserved liquid asset requirement and investment ratio calculation in underlying assets, for example.

The consultation paper is available on the SEC website at www.sec.or.th. Stakeholders and interested parties are welcome to submit comments through the website, or email to pokpong@sec.or.th until April 30, 2014.