Bangkok, Wednesday 25 July 2018 - SEC is seeking comments on the draft notification allowing operators of the securities and derivative contract business to trade capital market products on behalf of their clients, within the limit consented by the clients, in order to increase investment opportunities and support various investments for investors.
SEC has a plan to revise
the relevant notification to allow investment consultants of operators of securities and the derivative
contract business, who have expertise in investment and keeping abreast of the
market situation, to be able to make decisions to trade capital market products
on behalf of their clients, provided that consent from the clients must be
obtained and such investments must be within the scope agreed by the clients in
advance, in order to expand the service scope of the business operators and
meet the investors’ requirements in a more comprehensive and convenient manner.
In this regard, SEC
proposed this concept at a public hearing at the end of 2017, and had referred the
comments for consultation with experts.
At this hearing, SEC was open to comments for drafting the relevant notification that
would cover the scope of products for which the business operators can provide
services, being listed products on the Thai capital market and foreign capital
markets. The draft notification also
specifies the details of the service agreements, for example, the provision on
receiving client orders, where the business operators and the clients can agree
on the securities and derivative contracts that the clients wish to trade with
no limit, in order for investors to have options and opportunity for investment
in products that they wish to invest in, and the stop-loss limit shall be fixed in order to allow
the service providers and clients to jointly specify action to be carried out
when it reaches the stop-loss limit. In addition, the business operators shall be
required to perform additional duties, for example, putting in place a system
to inform the clients within a specified period in the case that the loss
exceeds the specified amount, etc.
SEC has made the
public hearing document available at www.sec.or.th/hearing. Related persons and interested parties
may express their comments at the website or send comments by e-mail to piyaruj@sec.or.th or wasu@sec.or.th until 24 August 2018. It is expected that the new notification will be effective
by the third quarter of 2018.
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