Bangkok, Friday 9 August 2019 - SEC is conducting a public hearing on the improvement in a portfolio report of outward foreign investment and derivative of mutual funds and provident funds after holding a discussion with the Bank of Thailand (BOT) to reduce burdens on business operators submitting the same reports. So, both agencies have agreed to exchange information in order to ensure effective supervision.
Currently, asset management companies
have roles in reporting their portfolio outward foreign and derivatives of
mutual funds and provident funds to both
SEC and BOT on a monthly basis. In order to reduce the asset management
companies’ reporting burdens, SEC held a discussion with BOT and reached a
joint decision that BOT would use information in the report that mutual fund
and provident fund operators file with SEC, instead of using BOT’s portfolio
and derivative investment aboard (PIA)
form.
To ensure complete information in the
report which will replace the PIA, SEC has proposed the following changes to be
made to the report so that more comprehensive information can be obtained as
needed, for example, 1) country code of the securities issuer, 2) average cost
of securities denominated in currencies of the foreign investment fund, 3) face
value of securities denominated in currencies of the foreign investment fund,
4) fair value denominated in currencies of the f foreign investment fund, 5)
notional value* of derivatives denominated in currencies of the foreign
investment fund, and 6) mark-to-market** profit and loss denominated in currencies
of the foreign investment fund.
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 email: arthipha@sec.or.th. The public
hearing ends on 9 September 2019.
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*
notional value is the contract value of derivatives
**
mark to market is an accounting practice to record the value of a financial
instrument according to its fair value