One of the SEC Strategic Plan’s goals is to build competitiveness by enabling a regulatory framework that supports standardized regulations. The regulatory guillotine scheme* under the Strategic Plan aims to standardize the SEC regulations in line with the changing situations to ensure that only necessary regulations are issued and enforcement is effective. In any case, appropriate investor protection remains intact while business operators still have convenience for business operation. 

The SEC has therefore reviewed the regulations on work systems of securities brokers and repealed two notifications that contain overlapping regulations with other notifications** and do not keep pace with changing situations. They are (1) the Notification of the Office of the Securities and Exchange Commission No. Or Thor. 10/2543 Re: Guidelines for Undertaking Securities Brokerage Business dated 8 June 2000, and (2) the Notification of the Office of the Securities and Exchange Commission No. Or Thor. 21/2543 Re: Guidelines for the Operation Control for the Securities Brokerage and Dealing of Securities That are Not Debt instruments dated 11 October 2000. The repeal of such notifications under the regulatory guillotine scheme will ensure appropriateness and convenience for business operators. After publication in the Government Gazette, it will become effective on 1 November 2020.  

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Note: 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 living or occupations will be abolished or revised to lessen burden on people. By doing so, methods used must be done with speed, transparency, low costs with participation from all related parties. 

** The two notifications above contain regulations that are overlapping with those contained in the  following notifications:   

(1)  Notification of the Capital Market Supervisory Board No. Tor Thor. 35/2556 Re: Standard Conduct of Business, Management Arrangement, Operating Systems, and Providing Services to Clients of Securities Companies and Derivatives Intermediaries dated 6 September 2013;  

(2)  Notification of the Capital Market Supervisory Board No. Tor Thor 39/2555 Re: Providing Compliance Unit of Intermediary dated 14 August 2012; 

(3)  Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 14/2562 Re: Rules in Detail on Providing Services to Clients of Securities Companies and Derivatives Intermediaries dated 12 February 2019; 

(4)  Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 50/2560 Re: Calculation and Report of Net Capital Calculation dated 29 December 2017; 

(5)  Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 37/2559 Re: Rules in Detail on Establishment of Information Technology System dated 12 September 2016; 

(6)  Notification of the Office of the Securities and Exchange Commission No. Sor Thor. 35/2557 Re:   Rules in Detail on Communication with and Providing Services to Clients of Securities Companies and Derivatives Intermediaries dated 10 October 2014;

(7)  Notification of Guidelines No. Nor Por. 2/2562. Re: Determining Policies, Measures and Operating Systems concerning Acts That May Cause Conflicts of Interest with Clients of Securities Companies and Proprietary Trading of Securities Companies (Annex 1) dated 20 February 2019.