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SEC issues a risk management manual for securities companies and derivatives business operators



Thursday 21 December 2023 | No. 255 / 2023


Bangkok, 21 December 2023 – The Securities and Exchange Commission (SEC) has issued a risk management manual for securities companies and derivatives business operators, collectively referred to as “business operators”, to be adopted as guidelines for ensuring that they have in place operational systems, governance, risk management and controls suitable for their business undertakings. The appropriate risk management and control mechanisms will assure that the operators conduct their businesses in a fair, responsible and efficient manner, and in the best interest of their clients, contributing to capital market integrity and sustainable development under various risk circumstances.

With this manual as guidance, it is expected that the business operators will accordingly review their risk management policies and procedures and report the results to the SEC as part of their 2024 annual compliance reports. In this front, reporting of any non-application or unfinished application of the recommended guidelines shall be accompanied by the explanation of the associated reasons, as an additional report, which is approved by the company’s board or audit committee. The SEC is confident that business operators’ implementation of this manual would not only help them achieve their objectives of safeguarding client benefits, enhance their trustworthiness, and maintain overall market integrity, but also reflect their self-discipline which would further reduce chances of law violations. In following this manual, if any wrongdoings are found, the business operators are encouraged to report the cases to the SEC and verify that sufficient risk management and control systems have been in place, so that the SEC imposition of supervision and enforcement measures will be considered proportionately and appropriately, in favor of such business operators. The risk management manual can be viewed at https://publish.sec.or.th/nrs/9998s.pdf.

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Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 255 / 2023 Thursday 21 December 2023
SEC issues a risk management manual for securities companies and derivatives business operators

Bangkok, 21 December 2023 – The Securities and Exchange Commission (SEC) has issued a risk management manual for securities companies and derivatives business operators, collectively referred to as “business operators”, to be adopted as guidelines for ensuring that they have in place operational systems, governance, risk management and controls suitable for their business undertakings. The appropriate risk management and control mechanisms will assure that the operators conduct their businesses in a fair, responsible and efficient manner, and in the best interest of their clients, contributing to capital market integrity and sustainable development under various risk circumstances.

With this manual as guidance, it is expected that the business operators will accordingly review their risk management policies and procedures and report the results to the SEC as part of their 2024 annual compliance reports. In this front, reporting of any non-application or unfinished application of the recommended guidelines shall be accompanied by the explanation of the associated reasons, as an additional report, which is approved by the company’s board or audit committee. The SEC is confident that business operators’ implementation of this manual would not only help them achieve their objectives of safeguarding client benefits, enhance their trustworthiness, and maintain overall market integrity, but also reflect their self-discipline which would further reduce chances of law violations. In following this manual, if any wrongdoings are found, the business operators are encouraged to report the cases to the SEC and verify that sufficient risk management and control systems have been in place, so that the SEC imposition of supervision and enforcement measures will be considered proportionately and appropriately, in favor of such business operators. The risk management manual can be viewed at https://publish.sec.or.th/nrs/9998s.pdf.

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