Bangkok, 17 January 2020 – SEC approved the Association of Thai Securities Companies guidelines for product trading to reduce obstacles and facilitate foreign investment, such as stocks, debt instruments, mutual funds and futures contracts where trading thereof is made through Thai intermediary business operators. This is in line with SEC’s policy to support more investment options for Thai investors to ensure their opportunity to receive the desired returns.
Previously SEC had a policy to support securities companies and derivatives business operators in Thailand (or intermediary business operators) to expand their scope of services for Thai investors to invest in products denominated in foreign currencies, which will enable Thai investors to have channels and options in making an investment based on their investment strategies in a more efficient manner. Based on previous statistics of foreign investment, it is found that investment by Thai investors through securities companies is on the rise in line with SEC’s continuous relaxation of relevant rules and regulations.
To facilitate foreign investment, SEC and the Association of Thai Securities Companies have jointly updated the procedural guidelines of the association by allowing investors to open an account directly with business operators overseas which will enable investors to transmit their own online trading orders in addition to the current channel where investors have to open an account which is a sub-account of a Thai intermediary’s omnibus account only. Moreover, investors may also transfer their investment portfolio from one Thai business operator to another Thai business operator and may transfer securities or positions in derivatives or foreign currencies overseas to a Thai business operator that they wish to use its services. In this regard, investors must present information to prove sources of investment funds in accordance with the rules of the Bank of Thailand and other applicable laws, among others.
SEC Secretary-General Ruenvadee Suwanmongkol said, “SEC has a policy to support and allow investors to have a variety of investment options and risk diversification appropriate for their investment objectives. For investment made via Thai business operators, investors will be given advices on foreign investment products that are suitable for them. Moreover, convenience will be provided to investors, such as contacting an oversea business operator and foreign currency exchange and transferring for the purpose of trading. In addition, investors can be confident that they will be protected through their use of service as it is the investment via experienced and professional business operators. SEC’s approval granted for updating of the procedural guidelines of Association of Thai Securities Companies will enable more convenience and flexibility for investors in making their investment.”
Currently SEC allows retail investors who invest in products denominated in foreign currencies through Thai business operators to invest in a variety of products such as stocks, debt instruments, mutual funds, and futures contracts which are under the supervision of foreign agencies that are members of IOSCO* or in the OECD** countries, or within the ASEAN Economic Community, consisting of over 120 nations. Therefore, investors have investment options to achieve the returns they desire under acceptable risks.
If such investors are persons required by the Bank of Thailand to get foreign investment allotment by SEC, the Thai business operators shall apply foreign investment allotment and report the use of such allotment to SEC and the Bank of Thailand as before.
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* IOSCO: International Organization of Securities Commission
** OECD: Organization for Economic Co-operation and Development