This public hearing proposes to revise the qualifications for private funds under the definition of “Institutional Investor.” The proposal would allow private funds to be recognized as institutional investors without requiring to assess the qualifications of the underlying clients for investor classification purposes*. This approach is based on the fact that private funds are managed by licensed securities business operators in the category of private fund management – professionals who possess the requisite knowledge and expertise and operate under the supervision of the SEC. Furthermore, these licensed operators bear the responsibility for classifying investors and managing investments in accordance with the appropriate client’s category. 

The public consultation is available at the SEC website: https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1062. Relevant stakeholders and other interested parties are invited to submit their comments via the website or email at debt@sec.or.th until March 12, 2025.
  

Remark:

* Currently, under the Notification of the Securities and Exchange Commission No. Kor Jor. 39/2564 Re: Determination of Definitions of Institutional Investor, Ultra-high Net Worth Investor and High Net Worth Investor, dated 24 December 2021 (available at https://law.sec.or.th/content/4859), the definition of “Institutional Investor” is determined by evaluating the qualifications of the underlying investors (a “look-through” approach). These qualifications are as follows::
          (1) The underlying investor must be an institutional investor as specified in Clause 5 of the SEC Notification No. Kor Jor. 39/2021; or
          (2) The underlying investor’s financial position must be equivalent to that of an Ultra High Net Worth Investor or a High Net Worth Investor.