SEC plans to revise criteria on the delegation of other persons to operate a business on behalf of the operators of securities, investment management, and derivative contract business in order to increase  flexibility and effectiveness in business operations by delegating other persons, who are prepared to operate the business under the principle of principal-agent relationship. SEC has held three public hearings from the third quarter of 2017 to the second quarter of 2018 and has included comments and suggestions of the private sector in the revision of the criteria.  Most of the parties involved agreed with the principles proposed by the SEC and added the principle of flexibility, in order that the business operators will be able to put this into practice effectively.  

The public hearing is intended to propose the draft notification that will cover the clear segregation of work for the delegation of other persons to operate.  The draft notification also allows business operators to choose the persons to operate a business on their behalf in a more flexible manner, whereby the business operators will be able to delegate other persons in respect of work related to the business operations.   In work for which there are few service providers and the  business operators will not be able to engage other service providers to provide services on their behalf immediately,  this work may have an impact on the overall capital market, with the provision that the business operators must select a service provider from the list of service providers approved by SEC.

In addition, the draft notification requires the business operators to comply with the policy, measures, and practice guideline for the delegation of other persons to operate a business on their behalf, for example, putting in place the necessary resources and experienced personnel in order to be able to supervise the operations of the delegated persons, and to formulate the policy in the delegation of other persons to operate a business on their behalf in order to ensure that the delegation is duly carried out.  

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 via the facsimile number 0-2033-9660 or e-mail nattasasi@sec.or.th or rangrong@sec.or.th until 3 September 2018.    

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