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SEC Thailand is conducting a public hearing on five draft notifications of mutual fund rules



Wednesday 14 November 2018 | No. 146 / 2018


Bangkok, Wednesday 14 November 2018 - SEC is seeking public comments on five draft notifications of the rules relating to the investment and management of mutual funds, the unitholding limitations, the liquidation of mutual funds, and the promotion of money market funds as an investment alternative for the public. The draft notifications are expected to be finalized and come into force from January 2019.

SEC has applied the principles for regulatory reform to revising governing mutual fund regulations in order to ensure that these rules are reasonable, practical and less burdensome for the investment management companies while achieving the appropriate right balance between regulatory flexibility and investor protection. At the same time, investors are offered money market funds as an alternative vehicle to manage their liquidity and to put their money away for a short time, besides bank deposits.

Earlier, SEC conducted an opinion survey and also worked with the Association of Investment Management Companies and asset management companies . The survey results therefore provided information revising relevant regulations to align with international standards, to suit the nature of business and to safeguard investors’ interests. SEC has revised the following five notifications, namely, (1) The draft notification relating to the investment of mutual funds, (2) the draft notification relating to the management of mutual funds, (3) the draft notification relating to the limitations of unitholding, (4) the draft notification relating to the liquidation of mutual funds, and (5) the draft notification relating to the promotion of money-market funds as a good short-term investment option.

The essential details in the draft notifications are, for example, adding the types of assets in which mutual funds are allowed to invest, requiring asset management companies to notify investors prior to raising fees or expenses, waiving the limitation rule on unitholding over one third when certain conditions are met, improving the liquidation rules of mutual funds to make it more practically expedient. Moreover, changes were also made to the notification relating to the establishment of money market funds with constant NAV and exempting business operators from performing the customer risk profile evaluation if the only investment product they offer is low-risk money-market fund.

The consultation paper can be found at https://www.sec.or.th/hearing. Stakeholders and interested parties are welcome to give comments and suggestions via the SEC’s website, or facsimile at 0-2033-9938 or 0-2263-6031 or email: narumon@sec.or.th or preeporn@sec.or.th. The public hearing ends on 1 December 2018.

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Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 146 / 2018 Wednesday 14 November 2018
SEC Thailand is conducting a public hearing on five draft notifications of mutual fund rules
Bangkok, Wednesday 14 November 2018 - SEC is seeking public comments on five draft notifications of the rules relating to the investment and management of mutual funds, the unitholding limitations, the liquidation of mutual funds, and the promotion of money market funds as an investment alternative for the public. The draft notifications are expected to be finalized and come into force from January 2019.

SEC has applied the principles for regulatory reform to revising governing mutual fund regulations in order to ensure that these rules are reasonable, practical and less burdensome for the investment management companies while achieving the appropriate right balance between regulatory flexibility and investor protection. At the same time, investors are offered money market funds as an alternative vehicle to manage their liquidity and to put their money away for a short time, besides bank deposits.

Earlier, SEC conducted an opinion survey and also worked with the Association of Investment Management Companies and asset management companies . The survey results therefore provided information revising relevant regulations to align with international standards, to suit the nature of business and to safeguard investors’ interests. SEC has revised the following five notifications, namely, (1) The draft notification relating to the investment of mutual funds, (2) the draft notification relating to the management of mutual funds, (3) the draft notification relating to the limitations of unitholding, (4) the draft notification relating to the liquidation of mutual funds, and (5) the draft notification relating to the promotion of money-market funds as a good short-term investment option.

The essential details in the draft notifications are, for example, adding the types of assets in which mutual funds are allowed to invest, requiring asset management companies to notify investors prior to raising fees or expenses, waiving the limitation rule on unitholding over one third when certain conditions are met, improving the liquidation rules of mutual funds to make it more practically expedient. Moreover, changes were also made to the notification relating to the establishment of money market funds with constant NAV and exempting business operators from performing the customer risk profile evaluation if the only investment product they offer is low-risk money-market fund.

The consultation paper can be found at https://www.sec.or.th/hearing. Stakeholders and interested parties are welcome to give comments and suggestions via the SEC’s website, or facsimile at 0-2033-9938 or 0-2263-6031 or email: narumon@sec.or.th or preeporn@sec.or.th. The public hearing ends on 1 December 2018.

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