Bangkok, Tuesday 8 October 2019 - SEC is seeking public comments on additional and amended rules to make selling/buying investment units more convenient for investors in a bid to expand opportunities for the general public to access the capital market and use it as a vehicle for savings and investment, while getting proper protection.
One of the
objectives of the Thai capital market development plan is to enable the public to access
and utilize the capital market for savings and investment purposes. SET
has taken steps to create opportunities and reduce restrictions to enable prospective investors
to access investment services by taking advantage of technological
advances which lead to the development of new financial service platforms that
correspond with consumer behaviors today, including new services to sell mutual
fund units. Currently, there are businesses that wish to provide financial
services in this area, driven by new business models that enable them to reach
a mass market. Despite their technical expertise, these companies are unable to
enter the market because of regulatory hurdles.
Therefore SEC
has revised rules to make it easier for companies to engage in this business,
for example, abolishing the rule requiring unit-selling agents to sell investment
units of different management companies and waiving the requirement to use the
term “securities company” in the company’s title if the company has previously been
engaged in other businesses. Additionally, in order to protect investors, SEC
has required business operators which provide services exclusively through
online outlets to sell only non-complex investment funds.