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SEC amends regulations for Thailand ESG Fund in line with the Cabinet’s resolution, enhancing investment flexibility



Friday 16 August 2024 | No. 170 / 2024


The Securities and Exchange Commission (SEC) has issued amendments to the regulations related to Thailand ESG Fund to expand investment options and encourage the allocation of funds to companies excelling in environmental conservation or sustainability, as well as companies exhibiting corporate governance excellence and having a corporate value up plan. These regulatory amendments are aligned with the Cabinet’s resolution passed on 30 July 2024, which approved revised tax benefits to promote investment that supports national sustainability. The amendments to the regulations for Thailand ESG Fund take effect from 16 August 2024 onwards.   

Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “The SEC has issued five notifications amending the regulations to expand the eligible assets of Thailand ESG Fund. These notifications were published in the Government Gazette on 16 August 2024, enabling asset management companies (AMCs) to establish a new Thailand ESG fund or revise the existing schemes to be in line with the expanded investment scope. The SEC also held a session on 14 August 2024 to clarify these amendments for AMCs and relevant business operators.  

Under the new criteria, Thailand ESG Fund can invest in a broader range of stocks of companies that demonstrate outstanding environmental or sustainability ratings or scores, as evaluated by reliable and independent institutions. In addition, Thailand ESG Fund can also invest in companies with corporate governance excellence and disclosure of a corporate value up plan via  the Stock Exchange of Thailand (SET)’s platform. This approach aims to foster value creation among listed companies. Additionally, the SEC has revised regulations for AMCs managing Thailand ESG Fund, requiring them to optimize their knowledge, capabilities and expertise with due care (fiduciary duty) in selecting high-quality assets for investment, in line with the objective of Thailand ESG Fund, which is to support Thailand’s sustainable development,” added SEC Secretary-General.

Investors are encouraged to review each fund’s investment policies and sustainable development goals before making investment decisions. Thailand ESG Fund will disclose sustainability information in accordance with the regulations governing Sustainable and Responsible Investing Fund (SRI Fund). Investors could check the list of Thailand ESG Fund upon their complete registration with the SEC via this link: https://sustainablefinance.sec.or.th/Fund  

 
Investments in Thailand ESG Fund are eligible for a tax deduction of up to 30 percent of the individual assessable income, with a maximum limit of 300,000 baht per person per year, for purchases of investment units made between 1 January 2024 and 31 December 2026. These investment units must be held for at least five years from the date of purchase. The Ministry of Finance will evaluate the effectiveness of this tax benefit measure at the end of the three-year period.  

 


 

 

 

 





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NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 170 / 2024 Friday 16 August 2024
SEC amends regulations for Thailand ESG Fund in line with the Cabinet’s resolution, enhancing investment flexibility

The Securities and Exchange Commission (SEC) has issued amendments to the regulations related to Thailand ESG Fund to expand investment options and encourage the allocation of funds to companies excelling in environmental conservation or sustainability, as well as companies exhibiting corporate governance excellence and having a corporate value up plan. These regulatory amendments are aligned with the Cabinet’s resolution passed on 30 July 2024, which approved revised tax benefits to promote investment that supports national sustainability. The amendments to the regulations for Thailand ESG Fund take effect from 16 August 2024 onwards.   

Mrs. Pornanong Budsaratragoon, SEC Secretary-General, said: “The SEC has issued five notifications amending the regulations to expand the eligible assets of Thailand ESG Fund. These notifications were published in the Government Gazette on 16 August 2024, enabling asset management companies (AMCs) to establish a new Thailand ESG fund or revise the existing schemes to be in line with the expanded investment scope. The SEC also held a session on 14 August 2024 to clarify these amendments for AMCs and relevant business operators.  

Under the new criteria, Thailand ESG Fund can invest in a broader range of stocks of companies that demonstrate outstanding environmental or sustainability ratings or scores, as evaluated by reliable and independent institutions. In addition, Thailand ESG Fund can also invest in companies with corporate governance excellence and disclosure of a corporate value up plan via  the Stock Exchange of Thailand (SET)’s platform. This approach aims to foster value creation among listed companies. Additionally, the SEC has revised regulations for AMCs managing Thailand ESG Fund, requiring them to optimize their knowledge, capabilities and expertise with due care (fiduciary duty) in selecting high-quality assets for investment, in line with the objective of Thailand ESG Fund, which is to support Thailand’s sustainable development,” added SEC Secretary-General.

Investors are encouraged to review each fund’s investment policies and sustainable development goals before making investment decisions. Thailand ESG Fund will disclose sustainability information in accordance with the regulations governing Sustainable and Responsible Investing Fund (SRI Fund). Investors could check the list of Thailand ESG Fund upon their complete registration with the SEC via this link: https://sustainablefinance.sec.or.th/Fund  

 
Investments in Thailand ESG Fund are eligible for a tax deduction of up to 30 percent of the individual assessable income, with a maximum limit of 300,000 baht per person per year, for purchases of investment units made between 1 January 2024 and 31 December 2026. These investment units must be held for at least five years from the date of purchase. The Ministry of Finance will evaluate the effectiveness of this tax benefit measure at the end of the three-year period.