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SEC eases rules on establishment of audit committee of securities companies



Friday 15 June 2018 | No. 67 / 2018


Bangkok, 15 June 2018 – SEC loosens rules regarding the audit committee of securities companies. The revised rules exempt the securities companies which do not keep the customers’ assets in their possessions from establishing the audit committee if alternative mechanism which can replace the performance of such committee is put in place in order to lessen burdens of the business operators and enhance their competitiveness.

SEC issues a notification of the capital market supervisory board revising rules regarding the establishment of audit committee of securities companies by requiring a securities company keeping its customers’ assets in its possession to have at least 2 audit responsible for recipience notified from the auditor that may report doubtful behavior which directors or managers have committed an offense as specified, and such committees shall not be responsible for the day-to-day operation. A securities company not keeping its customers’ assets in its possession is allowed to establish any mechanism or procedure to replace the performance of the audit committee because there is less possibility of damage to the customers and requirement of the audit committee may cause unnecessary burden on the business sector. In addition, as SEC has measures for monitoring and inspection of reports, data, including business standards and ethics of the securities companies, it is able to ease the rules to better facilitate the business operations. This notification will be effective from 16 June 2018.












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NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 67 / 2018 Friday 15 June 2018
SEC eases rules on establishment of audit committee of securities companies
Bangkok, 15 June 2018 – SEC loosens rules regarding the audit committee of securities companies. The revised rules exempt the securities companies which do not keep the customers’ assets in their possessions from establishing the audit committee if alternative mechanism which can replace the performance of such committee is put in place in order to lessen burdens of the business operators and enhance their competitiveness.

SEC issues a notification of the capital market supervisory board revising rules regarding the establishment of audit committee of securities companies by requiring a securities company keeping its customers’ assets in its possession to have at least 2 audit responsible for recipience notified from the auditor that may report doubtful behavior which directors or managers have committed an offense as specified, and such committees shall not be responsible for the day-to-day operation. A securities company not keeping its customers’ assets in its possession is allowed to establish any mechanism or procedure to replace the performance of the audit committee because there is less possibility of damage to the customers and requirement of the audit committee may cause unnecessary burden on the business sector. In addition, as SEC has measures for monitoring and inspection of reports, data, including business standards and ethics of the securities companies, it is able to ease the rules to better facilitate the business operations. This notification will be effective from 16 June 2018.