Bangkok, 7 April 2021 – The Securities and Exchange Commission (SEC) has amended the regulations regarding the approval of auditors in the capital market prescribed in the Notification of the Office of the Securities and Exchange Commission No. Sor Shor.39/2553. Part of the SEC’s regulatory guillotine scheme, the amendments involve relaxation of some requirements for obtaining approval which may be overly rigid and inconsistent with the current auditing practice and circumstances in Thailand. This is in line with the SEC’s strategy to increase approved auditors to sufficiently support the ever-increasing listed companies while keeping up audit quality in the capital market in accordance with the international standards without imposing any excessive regulatory burdens.
SEC Secretary-General Ruenvadee Suwanmongkol said: “The auditing context has evolved significantly over time. The
SEC thus revises the requirements on approval of auditors in the capital market
specified in the SEC Office Notification No. Sor Shor. 39/2553 to be in line
with the current situation. The amendments aim to facilitate high potential
auditors’ entry into the capital market to sufficiently support capital market
growth. Essentially, the amendments will
(1) lower the requirement regarding audit experience
from a minimum of ten years to 7 years;
(2) lessen the requirement on a minimum number
of businesses and the nature of the businesses for which the auditors perform
audit work and affix signature on the auditor’s report from at least three
businesses to at least two businesses;
(3) allow auditors working as an
engagement partner of commercial banks to file an application for approval with
the SEC Office, disregarding the requirement that such auditors have to
perform their audit work as a signing partner; and
(4) allow capital market auditors who are
unable to maintain their qualifications as a leader or
a partner of an audit firm or an equivalent
position to maintain their status as a capital market auditor without immediate
termination, provided that steps are taken by the auditor to make rectification
to obtain the prescribed qualifications within the given time period as set out
by the SEC Office. While the amendments eliminate
excessive requirements and facilitate auditors in the capital market, audit
quality will not be compromised as the SEC still maintains screening procedures
of the qualifications of auditors and the quality of audit work of the auditor
who applies for approval in line with international standards. The amended
regulations will become effective from 1 May 2021.”
The SEC has issued a circular to auditors to
provide explanation and guidance on the amendments to the requirements for
applying for approval and maintaining status as capital market auditor in
compliance with the revised notification.
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Remarks:
* Notification of the Office of the Securities and Exchange Commission No. Sor
Shor. 39/2553 Re: Approval of Auditors in the Capital Market dated 23 September
2010.
** 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.