Bangkok, 3 January 2023 – The Securities and Exchange Commission (SEC) has issued regulations exempting the application fee for the establishment of Sustainable and Responsible Investing Fund (SRI Fund) and the amendment fee for mutual fund schemes to be designated as SRI Fund. Both exemptions valid for the applications submitted in 2023 with an aim to promote sustainable and responsible investment. Concurrently, securities and derivatives business operators are exempted from paying annual fee for temporarily discontinued licensed business. All these fee exemptions are in accordance with the Cabinet’s approval of “2023 New Year Gifts” to the pubic announced on 20th December 2022.
Ms. Ruenvadee Suwanmongkol, SEC Secretary-General, said: “As a capital market regulator, the SEC recognizes the importance of encouraging sustainable and responsible investment and it is the capital market’s role to do so in the drive towards sustainable development of the economy and the society. These SRI Fund fee exemptions are part of the SEC’s efforts to support asset management companies in giving more weight to sustainability-driven securities investment. This means issuers of such securities could gain more recognition from stakeholders and grow their business sustainably while contributing to a better social and environmental development in line with the 20-Year National Strategy and the UN Sustainable Development Goals (SDGs). This fee exemption measure also helps to introduce more sustainable investment products to the Thai capital market and give more investment choices to investors.”
Pursuant to the Fee Exemption Regulations, the application fee of 100,000 baht is exempt for an SRI Fund establishment and the application fee for amendment to a mutual fund scheme to be designated as SRI Fund is exempt at an amount not exceeding 5,000 baht per fund scheme. Both exemptions are valid for the applications submitted in 2023. The Notification of the SRI Fund Fee Exemption Regulations has been published in the Government Gazette, taking effect from 1 January onwards.
An SRI Fund is a mutual fund that invests mainly in businesses that operate according to universal sustainability principles such as the SDGs driven by the UN Global Compact. Asset management companies managing SRI Funds are required to disclose related information in full in accordance with common disclosure standards. This is to allow investors to compare SRI Funds conveniently and have sufficient information for making informed investment decisions.
Concurrently, the SEC has revised regulations related to determination of fees collected from licensed businesses in accordance with the resolution of the SEC Board Meeting No. 15/2565 dated 10 November 2022. Pursuant to the revised regulations, intermediaries requesting to discontinue a licensed business that has not been operated throughout a calendar year are eligible for a fee exemption for the discontinued business. This is to support determination of fees that reflects supervisory costs and reduce costs of intermediaries. In any case, when combining all fees to be paid annually, the total fee amount must not be lower than the minimum rates, as specified. The revised regulations have become effective since 1 January 2023.
The exemption of the application fee for SRI Fund establishment, the exemption of the application fee for amendment to mutual fund schemes to be designated as SRI Fund, and the exemption of annual fee for temporarily discontinued licensed business are part of the “2023 New Year Gifts” to the public in accordance with the Cabinet’s resolution on 20th December 2022.
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