Bangkok, 7 October 2019 – The SEC has announced the overall results of the 2nd Financial Sector Assessment Program (FSAP) conducted during 2018-2019, which show significant improvements of the SEC’s capital market oversight and the financial sector’s clearing and settlement infrastructures that are now in line with global standards.
SEC Secretary-General Ruenvadee Suwanmongkol said: “This is the second time Thailand has participated in FSAP voluntarily because it is important that the development of the Thai financial sector comply with international standards and be recognized in the global community. Also, the capital market is a key driver of the national financial system. The FSAP involved two main separate assessment areas, namely securities regulation reviewed under 37 IOSCO Objectives and Principles of Securities Regulation, and the clearing and settlement infrastructures reviewed under the Principles for Financial Market Infrastructure (PFMI).”
Thailand is among the first jurisdictions to participate in the assessment based on the newly updated IOSCO Principles issued on May 2017, which have been developed to support securities regulators to tackle new challenges and risks. The second FSAP included the assessment of the SEC’s roles and responsibilities regarding transparency, independence, rulemaking procedures, resources management, and oversights of stakeholders, e.g., securities issuers, securities companies, asset management companies, the Stock Exchange of Thailand (SET), auditors and credit rating agencies, etc.
The SEC has significantly improved the level of implementation of the IOSCO Principles, with 35 out of the total 37 areas being assessed as fully or broadly implemented. Such results reflect that the regulatory and supervisory framework of the Thai capital market are enhanced to be among those of the leading countries. Under the PFMI assessment, the SEC has received fully observed in all supervisory areas, while Thailand Securities Depository Co., Ltd. (TSD) has received fully or broadly observed on 17 out of 20 principles for its securities transfers and depository operation.
The assessment results in the two key areas have marked a major success and significant progress of the Thai capital market in accordance with international standards. These positive results help to build confidence of global investors and increase alternatives and choices for business operation and investment. In addition, they reaffirm the Thai capital market’s competitiveness and efficiency, which will further support sustainable growth of the market – the key mechanism for the development of the financial system and the economy at large.