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SEC adds monitoring measures for fund management to protect investors’ interests



Monday 18 February 2019 | No. 18 / 2019


Bangkok, Monday 18 February 2019 - SEC is conducting a public hearing on revising regulations related to mutual fund management in order to bring them into compliance with the amendment of the Securities and Exchange Act B.E. 2535 (1992) which stipulates that asset management companies must manage funds with loyalty and preserve the interests of unitholders and have a monitoring mechanism to oversee fund management. The move is also designed to raise the standard of mutual fund management in Thailand.

To ensure that asset management companies primarily manage funds for the investors’ benefits,  SEC has revised the regulations in order to control and monitor mutual fund management by requiring asset management companies to authorize persons to mornitor and control mutual fund. The persons performing the duty must have the qualifications as follows

(1)  Be independent from the asset management company, (2) Be under the supervision of high-level management, (3) Have knowledge, ability and readiness to undertake the duty, and (4) Execute the duty by taking into consideration the benefits of investors.

The persons performing the duty must monitor and oversee undertakings that may cause a conflict of interests to the unitholders, including undertakings that may be characterized as unfairness to the unitholders or may cause the unitholders to lose benefits that they are entitled to. Moreover, The persons performing the duty must give opinions relating to seeking a unitholders’ resolution to provide the unitholders supplementary information for decision-making and must report the monitoring results to the board of directors of the asset management company and SEC.

The revision is made to align with the amendment of the Securities and Exchange Act which aims to raise the standard of mutual fund management in Thailand and offers investors for more protection. The amendment of the act has been passed by the National Legislative Council.

The consultation paper can be found at www.sec.or.th/hearing. Stakeholders and interested parties are welcome to give comments and suggestions via SEC’s website, or facsimile at 0-2263-6072 or 0-2263-6203, or email: sumitra@sec.or.th. The public hearing ends on 22 February 2019.

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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. 18 / 2019 Monday 18 February 2019
SEC adds monitoring measures for fund management to protect investors’ interests
Bangkok, Monday 18 February 2019 - SEC is conducting a public hearing on revising regulations related to mutual fund management in order to bring them into compliance with the amendment of the Securities and Exchange Act B.E. 2535 (1992) which stipulates that asset management companies must manage funds with loyalty and preserve the interests of unitholders and have a monitoring mechanism to oversee fund management. The move is also designed to raise the standard of mutual fund management in Thailand.

To ensure that asset management companies primarily manage funds for the investors’ benefits,  SEC has revised the regulations in order to control and monitor mutual fund management by requiring asset management companies to authorize persons to mornitor and control mutual fund. The persons performing the duty must have the qualifications as follows

(1)  Be independent from the asset management company, (2) Be under the supervision of high-level management, (3) Have knowledge, ability and readiness to undertake the duty, and (4) Execute the duty by taking into consideration the benefits of investors.

The persons performing the duty must monitor and oversee undertakings that may cause a conflict of interests to the unitholders, including undertakings that may be characterized as unfairness to the unitholders or may cause the unitholders to lose benefits that they are entitled to. Moreover, The persons performing the duty must give opinions relating to seeking a unitholders’ resolution to provide the unitholders supplementary information for decision-making and must report the monitoring results to the board of directors of the asset management company and SEC.

The revision is made to align with the amendment of the Securities and Exchange Act which aims to raise the standard of mutual fund management in Thailand and offers investors for more protection. The amendment of the act has been passed by the National Legislative Council.

The consultation paper can be found at www.sec.or.th/hearing. Stakeholders and interested parties are welcome to give comments and suggestions via SEC’s website, or facsimile at 0-2263-6072 or 0-2263-6203, or email: sumitra@sec.or.th. The public hearing ends on 22 February 2019.

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