A key strategy of SEC is to urge Thai people to realize the importance of financial planning which should be practical to achieve the long-term financial well-being. For this purpose, Thai people require financial advice and planning service from advisors who are knowledgeable, provide quality services and are considerate of interest of the customers. Hence, the “Wealth Advice for All” project was initiated. This project encourages both existing and new business operators to provide more integrated financial advice and planning (wealth advice) service to general investors with investable assets not limited only to major investors or high net worth investors.

The guidelines proposed by SEC for supervision and encouragement of such business cover 4 key points as follows:

1.     The process for wealth advice service provision requires that the business operators must provide all five services as follows: (1) exploring and understanding customers; (2) constructing an investment portfolio; (3) implementing the portfolio according to the asset allocation plan; (4) monitoring and rebalancing the portfolio; and (5) providing consolidated reports for customers’ review;

2.     The wealth advice service providers must obtain approval from SEC, have a system in rendering the integrated service and provide services in accordance with the required standards;

3.     The wealth advice service providers must report the proceeds from sale of mutual funds to the investors to ensure that the investors have sufficient information for making the investment decision and shall not make payment of commissions to the employees providing advice to the investors in order to prevent conflict of interest in respect of advice provision;

4.     The wealth advice service providers who are securities brokers may automatically rebalance the customers’ portfolio to attain the customers’ goal subject to the specified framework.

A business operator who is interested in providing the wealth advice service and qualified in accordance with the relevant criteria may apply for approval of SEC. In addition, SEC will urge awareness and encourage the investors to use the wealth advice service through the approved business operators and in cooperation with alliances in both government and private sectors to ensure that the investors will receive the wealth advice service that will assist them to achieve sustainable financial stability.

The consultation paper is available at www.sec.or.th/hearing. Stakeholders and interested parties are welcome to submit comments and recommendations via the website, or email: nattasasi@sec.or.th or rangrong@sec.or.th. The public hearing ends on 9 April 2018.

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