Bangkok, 25 June 2018 – SEC is seeking public comments on the rules permitting ASEAN capital market professions to offer securities advisory services to investors in Thailand under the Framework of ASEAN Capital Market Forum (ACMF) aiming to boost cross-border mobility of investment consultants and securities analysts in ASEAN region, provide investors alternatives access to ASEAN securities information, and expand the market for securities companies in ASEAN countries.
In March 2018, ACMF launched the
ACMF Professional Mobility Framework to contribute towards investment
consultation and analysis on cross-border products in ASEAN region which will
facilitate investor access to information prepared by professionals with
understanding of foreign products for investment decision-making. With respect
to movement to a host country, professionals approved by the regulator of the
recognized ACMF member will be exempted knowledge test on products and rules
and regulations in the host country and subject to the specified scope of supervision,
such as performance of services through business operators in the host country,
prohibition of giving advice to particular customers and soliciting for sales of
the capital market products. Each ACMF member may issue additional detailed
rules and regulations applicable to its capital market. The first phase of the Framework
is participated by 5 countries, namely (1) Thailand, (2) Malaysia, (3)
Singapore, (4) Vietnam, and (5) Philippines, and starts with providing analysis
and advice on securities
not having complex characteristics, such as stock, bonds,
mutual fund, collective investment schemes (CIS) and real estate investment
trusts (REIT). It is expected to be effective in January 2019.
Even though Thailand has already
had in effect the rules permitting foreign investment advisors to provide
advisory services to Thai customers, certain details of these rules are not in
line with the Framework of ACMF. SEC therefore proposes to prescribe additional
rules specifically applicable to the professionals from ASEAN countries to
provide securities advisory and analysis services to Thai investors under the
Framework of ACMF, for example, they must be approved as another type of
“capital market professional” under the specified conditions, such as
qualifications and disqualifications, more flexible approval process, including
rules on performance of services similarly to the current rules on oversight of
investment consultants
and analysts.
The consultation paper is available
at www.sec.or.th/hearing. Stakeholders and interested parties are
welcome to submit comments and recommendations via the website, or email: juthaporn@sec.or.th or witchulada@sec.or.th. The public
hearing ends on 4 July 2018.
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