Bangkok, 23 April 2020 – SEC is seeking public comments on a proposed amendment to the licensing rules to add two types of securities business license – equity intermediary license and private fund management license – as prescribed by the draft ministerial regulation. The amendment would also allow a fee reduction for the existing licensees applying for a new license.
The Cabinet has passed the resolution
approving in principle the draft Ministerial Regulation concerning Granting
of Approval for Undertaking Securities Business, which prescribes two
additional types of securities business license, namely (1) Type E Securities
Business License* for equity instruments, and (2) Private Fund Management
License. The proposed amendment aims to increase choices of service providers
for investors to choose from to ensure good quality services that meet their
needs, which would subsequently contribute to the capital market development.
The draft Ministerial Regulation is expected to take effect in the third or
fourth quarter this year.
SEC is therefore proposing the amendment
to the related rules to accommodate securities business undertaking in
accordance with the added types of license prescribed in the draft Ministerial
Regulation. In this regard, financial institutions established under specific
laws would be allowed to apply for Type E Securities Business License to
provide services related to equity instruments and Private Fund Management License. In addition, the amendment would allow intermediaries licensed
to undertake private fund management business to apply for related licenses
without license fee as is the case with the existing rules.
In addition, the
existing licensees wishing to apply for Type E Securities Business License or Private
Fund Management License instead to be more in line with the actual operated business
may use the remaining paid fee as a discount for the new license fee.
The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=619.
Stakeholders and interested parties are
welcome to give comments and suggestions via the website or email: janthaporn@sec.or.th or chanisarab@sec.or.th. The public
hearing ends on 22 May 2020.
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Note:
*
Type
E Securities Business License means a license to undertake securities business
in various categories consisting of: (1) equity
brokerage, (2) equity dealing, (3) equity underwriting, (4) investment advisory service, and (5) securities borrowing and lending.