Bangkok, 12 January 2024 – The Securities and Exchange Commission (SEC) is seeking public comments on proposed amendments to the regulations requiring audit firms to maintain a minimum number of auditors in the capital market, and to grant a fee exemption for resubmission of the application for approval of auditor in the capital market for the applicants who affiliated with audit firms outside the capital market. The proposed amendments aim to promote the efficiency of the audit firms in the capital market and their staff sufficiency to provide high-quality audit services to listed companies in compliance with professional standards.

Earlier, the SEC conducted a public hearing on the proposed principles for requiring audit firms in the capital market to maintain a minimum number of capital market auditors. Most respondents agreed with the proposal, viewing that a minimum of four auditors was appropriate. Additionally, they suggested that the SEC give audit firms a suitable timeframe for recruiting more auditors to meet the minimum requirement and give the unqualified auditors* a sufficient time to rectify their qualifications. The SEC took the suggestions into account to revise the proposed amendments to be more appropriate and mitigate unintended consequences for auditors and their clients, specifically businesses in the capital market.

The SEC is therefore seeking public comments on the draft amendments to the relevant regulations,** with the essential points as follows: 
          (1)  Requiring the audit firms in the capital market to maintain a minimum of four auditors in the capital market, staring from 1 March 2026, and the requirement would take effect immediately for audit firms outside the capital market (having no capital market auditors on their staff);  
          (2)  Exempting the application fee for the auditor applicants who resubmit the application within one year from the submission date of the first application, on the condition that such applicants whose performance met the quality criteria but had been declined due to affiliation with audit firms failing to meet the requirement of four auditors at a minimum;
          (3) Extending the period for rectifying the qualifications to be affiliated with an audit firm that meets the requirement of four auditors at a minimum, from 180 days to one year. 

The consultation paper is available at www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=966. Stakeholders and interested parties are welcome to submit comments and suggestions through the website or email: AuditOversight@sec.or.th. The public hearing ends on 9 February 2024.

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Remarks:
* Referring to auditors in the capital market not affiliated with audit firms that meet the requirement of four auditors at a minimum, as prescribed by the SEC.
** The Notification of the Office of the Securities and Exchange Commission No. Sor Shor. 39/2553 Re: Granting of Approval for Auditors in the Capital Market dated 23 September 2010, and the Notification of the Office of the Securities and Exchange Commission No. Sor Bor. 28/2547 Re: Determination of Fees for Filing of the Registration Statement, Registration and Other Applications dated 7 July 2018.