Sign In
SEC News
SEC amends regulations on provision of advisory services for investment in foreign capital market products to enhance efficiency and flexibility



Wednesday 20 December 2023 | No. 253 / 2023


Bangkok, 20 December 2023 – The Securities and Exchange Commission (SEC) has revised the regulations on the provision of advisory services to investors in Thailand for investment in the foreign currency denominated products so as to enhance efficiency and flexibility. The amended notifications will be effective as from 16 February 2024.

At present, securities and derivatives business operators (Thai business operators)* are allowed to provide services for Thai investors’ investment in foreign capital market products through business operators in foreign jurisdictions/countries with their personnel giving investment advice. Under the governing rules and procedures, foreign business operators, having the prescribed characteristics and giving advice or information on foreign currency denominated capital market products through Thai business operators, are not subject to the requirements to obtain licenses for investment advisory service (IA) business undertakings. In this regard, Thai business operators have to inform the SEC of the names of such foreign personnel in advance and determine the term for their provision of advisory services not exceeding the period specified by law.

To accommodate the business undertakings while ensuring that investors obtain appropriate investment advice and information in a timely and efficient manner, the SEC has three relevant notifications** amended with the salient features as follows:

1. Adjusting conditions for IA license exemption for foreign business operators, in which Thai business operators are allowed to also inform the SEC of the names of foreign business operators instead of only the names of the foreign personnel as previously required;

2. Modifying the requirements for notifying the names of foreign personnel of foreign business operators, allowing a more flexible timeframe from one business day in advance to within seven business days from the day investment information or advice, in any forms or through any communication channels, is given to Thai investors; 

3. Revising the required qualifications and assignment period of foreign personnel to ensure that the advisory services are provided as needed on a temporary basis, instead of prescribing only the general length of stay in Thailand for no longer than 90 days in each calendar year.

Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “As foreign investment of Thai investors increases, the SEC has urged them to study the information about those foreign investment products carefully, utilizing appropriate advice from Thai business operators. These amendments to the relevant notifications would allow Thai investors chances to obtain additional information, advice, and clarifications as needed from foreign business operators who have expertise in the investment products of interest, the services in which Thai business operators also have responsibilities to oversee the appropriateness of foreign business operators, their personnel, and the provision of their services.”

The three relevant notifications were published in the Royal Gazette on 16 December 2023. As Thai business operators need to prepare their operational systems for this purpose, the revised regulations will come into force as from 16 February 2024. 

______________________________

Remarks:  

* Means (1) a securities firm licensed to undertake the securities business in the category of securities brokerage, securities dealing or securities underwriting, and (2) a person licensed to undertake the derivatives business in the category of derivatives agent or derivatives dealer.

** Three related notifications are as follows:

1. The Notification of the Securities and Exchange Commission No. Kor Thor. 20/2566 Re: Prescribing Natures of Giving Advice to Public Not Being Regarded as Engagement in the Securities Business in the Category of Investment Advisory Service (No. 6) dated 1 December 2023: https://publish.sec.or.th/nrs/9991s.pdf; 

  2. The Notification of the Securities and Exchange Commission No. Kor Thor 21/2566 Re: Prescribing Natures of Giving Advice to Public Not Being Regarded as Engagement in the Derivatives Business in the Category of Derivatives Advisor (No. 3) dated 1 December 2023: https://publish.sec.or.th/nrs/9992s.pdf; 

3. The Notification of the Capital Market Supervisory Board No. Tor Thor 41/2566 Re: Provision of Services to Clients regarding Investment in Capital Market Products Denominated in Foreign Currency (No. 5) dated 30 November 2023: https://publish.sec.or.th/nrs/9993s.pdf.

*** Except for the case of giving information or advice to the qualified institutional investors as prescribed under the Notification of the Capital Market Supervisory Board No. Tor Thor 1/2560, in which Thai business operators are exempted from having to inform the names of foreign personnel.





Related News

SEC amends the Rules on Establishment of Information Technology System to strengthen investor confidence
SEC announces special holidays for securities companies and derivatives business operators
SEC public hearing on proposed amendments to private fund regulations
SEC Thailand, CFA Institute, and CFA Society Thailand Collaborate to Integrate ESG into Investment Analysis and Advisory
Empowering Asset Managers: SEC Thailand Partners with PRI and AIGCC for Climate Action Plans Masterclass

Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 253 / 2023 Wednesday 20 December 2023
SEC amends regulations on provision of advisory services for investment in foreign capital market products to enhance efficiency and flexibility

Bangkok, 20 December 2023 – The Securities and Exchange Commission (SEC) has revised the regulations on the provision of advisory services to investors in Thailand for investment in the foreign currency denominated products so as to enhance efficiency and flexibility. The amended notifications will be effective as from 16 February 2024.

At present, securities and derivatives business operators (Thai business operators)* are allowed to provide services for Thai investors’ investment in foreign capital market products through business operators in foreign jurisdictions/countries with their personnel giving investment advice. Under the governing rules and procedures, foreign business operators, having the prescribed characteristics and giving advice or information on foreign currency denominated capital market products through Thai business operators, are not subject to the requirements to obtain licenses for investment advisory service (IA) business undertakings. In this regard, Thai business operators have to inform the SEC of the names of such foreign personnel in advance and determine the term for their provision of advisory services not exceeding the period specified by law.

To accommodate the business undertakings while ensuring that investors obtain appropriate investment advice and information in a timely and efficient manner, the SEC has three relevant notifications** amended with the salient features as follows:

1. Adjusting conditions for IA license exemption for foreign business operators, in which Thai business operators are allowed to also inform the SEC of the names of foreign business operators instead of only the names of the foreign personnel as previously required;

2. Modifying the requirements for notifying the names of foreign personnel of foreign business operators, allowing a more flexible timeframe from one business day in advance to within seven business days from the day investment information or advice, in any forms or through any communication channels, is given to Thai investors; 

3. Revising the required qualifications and assignment period of foreign personnel to ensure that the advisory services are provided as needed on a temporary basis, instead of prescribing only the general length of stay in Thailand for no longer than 90 days in each calendar year.

Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “As foreign investment of Thai investors increases, the SEC has urged them to study the information about those foreign investment products carefully, utilizing appropriate advice from Thai business operators. These amendments to the relevant notifications would allow Thai investors chances to obtain additional information, advice, and clarifications as needed from foreign business operators who have expertise in the investment products of interest, the services in which Thai business operators also have responsibilities to oversee the appropriateness of foreign business operators, their personnel, and the provision of their services.”

The three relevant notifications were published in the Royal Gazette on 16 December 2023. As Thai business operators need to prepare their operational systems for this purpose, the revised regulations will come into force as from 16 February 2024. 

______________________________

Remarks:  

* Means (1) a securities firm licensed to undertake the securities business in the category of securities brokerage, securities dealing or securities underwriting, and (2) a person licensed to undertake the derivatives business in the category of derivatives agent or derivatives dealer.

** Three related notifications are as follows:

1. The Notification of the Securities and Exchange Commission No. Kor Thor. 20/2566 Re: Prescribing Natures of Giving Advice to Public Not Being Regarded as Engagement in the Securities Business in the Category of Investment Advisory Service (No. 6) dated 1 December 2023: https://publish.sec.or.th/nrs/9991s.pdf; 

  2. The Notification of the Securities and Exchange Commission No. Kor Thor 21/2566 Re: Prescribing Natures of Giving Advice to Public Not Being Regarded as Engagement in the Derivatives Business in the Category of Derivatives Advisor (No. 3) dated 1 December 2023: https://publish.sec.or.th/nrs/9992s.pdf; 

3. The Notification of the Capital Market Supervisory Board No. Tor Thor 41/2566 Re: Provision of Services to Clients regarding Investment in Capital Market Products Denominated in Foreign Currency (No. 5) dated 30 November 2023: https://publish.sec.or.th/nrs/9993s.pdf.

*** Except for the case of giving information or advice to the qualified institutional investors as prescribed under the Notification of the Capital Market Supervisory Board No. Tor Thor 1/2560, in which Thai business operators are exempted from having to inform the names of foreign personnel.