Bangkok, 4 March 2021 – The Securities and Exchange Commission (SEC) is seeking public comments on the draft regulations relating to mutual fund disclosure requirements. This is one of the SEC’s regulatory guillotine schemes* and is the first of a series of reforms that aims to simplify mutual fund disclosure. The main objective of the amendments is to promote mutual fund disclosure documents that effectively communicate essential information to investors while reducing burdens and operating costs of asset management companies.
The proposed amendments aim to streamline and simplify mutual fund disclosure which currently requires numerous details and, in some parts, repetitive information is disclosed in other documents that asset management companies are already required to prepare and disclose to the unitholders. In drafting the regulations, the SEC took into account the feedbacks received from the business operators during the public hearing on the proposed amendments to the regulations and the concerns raised by asset management companies in the focus group meeting held in October 2020.
To this extent, the SEC amended the following clauses in three notifications:
(1) Clause 4, Clause 5, Clause 11 and Clause 14 of the Draft Notification of the SEC Office No. Sor Nor. /2564 Re: Details of the Mutual Fund Scheme;
(2) Clause 20 of the Draft Notification of the SEC Office No. Sor Nor. /2564 Re: Rules, Conditions and Procedures for Managing Mutual Funds for Retail Investors, Mutual Funds for Non-Retail Investors and Mutual Funds for Institutional Investors (No. ), including Appendix 5 and Appendix 8 thereof; and
(3) Clause 11 of the Draft Notification of the SEC Office No. Sor Nor. /2564 Re: Prospectus for Offering for Sale of Investment Units of Mutual Funds for Retail Investors, Mutual Funds for Non-Retail Investors and Mutual Funds for Institutional Investors (No. ), including Form 123-1 and additional explanations attached thereto.
The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=702. Stakeholders and interested parties are welcome to give comments and suggestions via the website or email: pheangna@sec.or.th or sireetho@sec.or.th. The public hearing ends on 3 April 2021.
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Remark:
*Regulatory Guillotine is the regulatory review of the existing laws and regulations. The reviewed laws and regulations that are not necessary or do not keep pace with situations or remain obstacles to livelihoods or engagement in occupations will be abolished or revised to lessen burdens on people. By doing so, methods used must be done with speed, transparency, low costs with participation of all related parties.