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SEC to pave way for crowdsourcing-based investment advice as mechanism for investors to reach information



Friday 22 February 2019 | No. 21 / 2019


Bangkok, Friday 22 February 2019 – SEC is conducting a public hearing on an exemption of supervision on investment advisor via the crowdsourcing*platform, in order to allow investors to reach sufficient and easily accessible information for investment and benefit the capital markets as a whole.

As information-consuming behavior has shifted as a result of technology, presenting information via crowdsourcing has been widely spreading. Therefore, SEC has had an idea to waive the supervision on investment advisor via crowdsourcing which are required to be granted SEC licenses. Investment advice must be made to general, not specific, investors and must be independent advice without benefits related to any financial product sellers. Such advice must be made online via website or electronics channels with a feature for general people’s participation for comments.

Investment advisors must not have behavior showing any objectives to engage in investment advisor business and must be registered with SEC. Even though the investment planners are waived in this matter, they are required to abide by the Securities and Exchange Act, B.E. 2535 (1992) and the Derivatives Act, B.E. 2546 (2003). They must not have behavior for unfair trade. Examples are analyses with distorted information or dissemination of advice with false information.

SEC disseminates the public hearing document on this issue at SEC website: www.sec.or.th/hearing.

Any related and interested parties are welcome to make comments at the website or e-mail: piyaruj@sec.or.th until 13 March 2019.

 

 

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Remark:

*crowdsourcing is a process that brainstorms from a majority of people toward an issue through a website, being designed in any form that allows people to make comments. Such form extends from a website gathering investment news with a feature for outsiders to make comments, a web board to a blog.

**Public hearing document - https://capital.sec.or.th/webapp/phs/upload/phs1549956277hearing_08_2562.pdf