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SEC and SFC make progresses on capital market cooperation in line with governmental policy



Tuesday 14 January 2020 | No. 6 / 2020


Bangkok, 14 January 2020 – The SEC had a meeting with the Securities and Futures Commission (SFC), Hong Kong Exchanges and Clearing Limited (HKEX), and the Financial Services & the Treasury Bureau at Hong Kong Convention and Exhibition Centre yesterday. The meeting discussed mutual cooperation related to capital market in accordance with the Memorandum of Understanding for Cooperation between the Thai Government and the Government of the Hong Kong Special Administrative Region signed on 29 November 2019.

SEC Secretary-General Ruenvadee Suwanmongkol has announced key progresses concluded at the meeting with HK counterparts, as follows: 

            (1) SEC and SFC will continue to work on the regulatory mapping exercises whereby a common ground has been established on 3 January 2020 regarding mutual recognition of funds. At the preliminary stage, both parties agreed on cross-border offerings of funds which includes plain vanilla funds and passive ETF. Both regulators are expecting to conclude the discussion and sign the MoU within the second quarter this year before cross-border offerings could be permitted. In this regard, SEC will arrange a meeting among Thai asset management companies, SFC, the Financial Services & the Treasury Bureau, the Hong Kong Monetary Authority and Hong Kong capital market intermediaries including fund distributors, e.g., banks, to explore cross-border opportunities and build mutual understanding in the matter. Additionally, SEC has closely cooperated with the Revenue Department to solve related tax issues, creating a level playing field for the industry players of both jurisdictions;  

            (2) SEC and SFC will conclude a gap analysis on real estate investment trusts (REITs) within 2020 before considering cross-border listing opportunites. In addition, SFC and HKEX have stated that depository receipts (DR) would be subject to similar regulations governing primary listing of Thai companies on HKEX. Therefore, any Thai company wishing to have its securities listed on HKEX must meet all requirements with an emphasis on investor protection;

            (3) SEC and SFC have agreed on technical assistance on green finance ecosystem whereby SFC will share its experience to support the environmental social governance (ESG) policy of the Thai capital market. 


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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. 6 / 2020 Tuesday 14 January 2020
SEC and SFC make progresses on capital market cooperation in line with governmental policy
Bangkok, 14 January 2020 – The SEC had a meeting with the Securities and Futures Commission (SFC), Hong Kong Exchanges and Clearing Limited (HKEX), and the Financial Services & the Treasury Bureau at Hong Kong Convention and Exhibition Centre yesterday. The meeting discussed mutual cooperation related to capital market in accordance with the Memorandum of Understanding for Cooperation between the Thai Government and the Government of the Hong Kong Special Administrative Region signed on 29 November 2019.

SEC Secretary-General Ruenvadee Suwanmongkol has announced key progresses concluded at the meeting with HK counterparts, as follows: 

            (1) SEC and SFC will continue to work on the regulatory mapping exercises whereby a common ground has been established on 3 January 2020 regarding mutual recognition of funds. At the preliminary stage, both parties agreed on cross-border offerings of funds which includes plain vanilla funds and passive ETF. Both regulators are expecting to conclude the discussion and sign the MoU within the second quarter this year before cross-border offerings could be permitted. In this regard, SEC will arrange a meeting among Thai asset management companies, SFC, the Financial Services & the Treasury Bureau, the Hong Kong Monetary Authority and Hong Kong capital market intermediaries including fund distributors, e.g., banks, to explore cross-border opportunities and build mutual understanding in the matter. Additionally, SEC has closely cooperated with the Revenue Department to solve related tax issues, creating a level playing field for the industry players of both jurisdictions;  

            (2) SEC and SFC will conclude a gap analysis on real estate investment trusts (REITs) within 2020 before considering cross-border listing opportunites. In addition, SFC and HKEX have stated that depository receipts (DR) would be subject to similar regulations governing primary listing of Thai companies on HKEX. Therefore, any Thai company wishing to have its securities listed on HKEX must meet all requirements with an emphasis on investor protection;

            (3) SEC and SFC have agreed on technical assistance on green finance ecosystem whereby SFC will share its experience to support the environmental social governance (ESG) policy of the Thai capital market. 


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