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SEC public hearing on draft amendments to the ongoing capital requirement rules



Monday 30 October 2017 | No. 101 / 2017



Bangkok, 30 October 2017 ? The SEC is seeking public comments on the draft amendments to the ongoing capital requirement rules, which are imposed on asset management companies. The hearing also covers draft operational procedures rules in case of failure to meet the requirement. The draft amendments aim to (1) support intermediaries in maintaining sufficient capital suitable for the nature of their business, (2) ensure their business continuity, and (3) better address operational risk.

Essentially, the draft amendments would allow intermediaries undertaking asset management business and investment unit brokerage to maintain ongoing capital at a ratio appropriate for their business and in line with international standards. In addition, the new rules would enhance business continuity while addressing potential damage from operational risks. For example, a lower ongoing capital requirement would be permissible specifically for intermediaries that only provide asset management services excluding asset custody to institutional investors. Effectively, the proposed guidelines would level the playing field while maintaining an appropriate level of investor protection.

In proposing these rules, the SEC has taken into account the public and stakeholders? comments and suggestions from the consultation on the governing principles conducted in last August. Notable changes were made to the level of ongoing capital requirement by taking into account the types of business models as well as the existence of lead regulator (if any). Also, certain conditions and periods of protection have been adjusted in this proposal to better manage business risks.

The draft operational procedures rules for intermediaries which fail to meet the ongoing capital requirement are also under this public hearing.

The consultation paper is available at www.sec.or.th/hearing. Stakeholders and interested parties are welcome to submit comments through the website, or telephone/facsimile at 0-2263-6033 or email: thanikul@sec.or.th. 

The public hearing ends on 17 November 2017.
  












Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 101 / 2017 Monday 30 October 2017
SEC public hearing on draft amendments to the ongoing capital requirement rules


Bangkok, 30 October 2017 ? The SEC is seeking public comments on the draft amendments to the ongoing capital requirement rules, which are imposed on asset management companies. The hearing also covers draft operational procedures rules in case of failure to meet the requirement. The draft amendments aim to (1) support intermediaries in maintaining sufficient capital suitable for the nature of their business, (2) ensure their business continuity, and (3) better address operational risk.

Essentially, the draft amendments would allow intermediaries undertaking asset management business and investment unit brokerage to maintain ongoing capital at a ratio appropriate for their business and in line with international standards. In addition, the new rules would enhance business continuity while addressing potential damage from operational risks. For example, a lower ongoing capital requirement would be permissible specifically for intermediaries that only provide asset management services excluding asset custody to institutional investors. Effectively, the proposed guidelines would level the playing field while maintaining an appropriate level of investor protection.

In proposing these rules, the SEC has taken into account the public and stakeholders? comments and suggestions from the consultation on the governing principles conducted in last August. Notable changes were made to the level of ongoing capital requirement by taking into account the types of business models as well as the existence of lead regulator (if any). Also, certain conditions and periods of protection have been adjusted in this proposal to better manage business risks.

The draft operational procedures rules for intermediaries which fail to meet the ongoing capital requirement are also under this public hearing.

The consultation paper is available at www.sec.or.th/hearing. Stakeholders and interested parties are welcome to submit comments through the website, or telephone/facsimile at 0-2263-6033 or email: thanikul@sec.or.th. 

The public hearing ends on 17 November 2017.