Bangkok, 3 September 2021 – The Securities and Exchange Commission (SEC) has revised the rules on acceptance of trading orders of capital market products whereby employees of securities companies and derivatives intermediaries are allowed to perform such duty from home. This revision aims to reduce burdens, facilitate business operation and enhance flexibility under the Regulatory Guillotine* scheme and the New Normal.
Due to the spread of the COVID-19 pandemic,
securities companies and derivatives intermediaries have to allow their
employees to perform duties from home and provide operational systems and
information technology to support the work-from-home routine. In the past, the
rules allowed employees of business operators to perform duties from home only
during emergency situations (under BCP plan), but for normal situations, business
operators must receive the SEC’s prior approval. Hence, business operators requested more clarity as
to which operational systems are required and a streamlined process of applying
for approval for accepting clients’ trading orders of capital market products
outside the office and for performing other duties from home in line with the
New Normal standard. The SEC, therefore, conducted a public hearing
on the relevant principles and rules and subsequently considered the received
comments and suggestions when revising the governing rules. The revision has taken
effect since 1 September 2021.
SEC Secretary-General Ruenvadee Suwanmongkol said: “This revision to the rules
on acceptance of trading orders of capital market products outside of the office
of securities companies and derivatives intermediaries aims to enhance
flexibility for business operators in providing services to investors and to
support their adjustment to the changing situation. Meanwhile, the SEC continues
to emphasize the importance of adequate measures to protect the clients’
interests and personal information. In this regard, business operators are
required to put in place operational systems as well as adequate and
appropriate risk management, especially with regard to the confidentiality of the
clients’ personal trading information and cyber security, to ensure that
investors receive the same level of service and protection as when their
employees perform duties in the office.”
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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.