The Regulatory Guillotine* scheme is one of the key projects supporting the implementation of SEC Strategic Plan in the area of competitiveness enhancement and connectivity. The scheme enables a regulatory framework that requires issuance and revision of necessary rules and regulations and promotion of effective enforcement in line with international standards and current situations.

In this regard, SEC has developed, reviewed, and revised regulations on the operation of investment management business covering the management of mutual fund from launching to termination, by doing as follows:

            (1)  Amending the regulations so that they are up-to-date, more flexible and more principle-based, for example, improving information disclosure channels by allowing asset management companies to provide easily and thoroughly assessable disclosure channels to investors as opposed to the previous requirement for specifically disclosing certain types of information at the companies’ office or the place of trading. In addition, the regulation writing method has been simplified through the use of diagrams and tables to facilitate asset management companies’ better understanding and proper compliance;

            (2)  Revoking notifications that are no longer necessary or become overlapping, for example, repealing the rule requiring asset management companies to notify the fund’s annual report channels to unitholders because the fund’s annual report has already been required to be sent to unitholders and published on asset management companies’ websites. Also, the rules on fund manager training have been repealed because the Notification on Capital Market Business Personnel has already prescribed rules on such matter;

            (3)  Consolidating regulations concerning the same issues for more convenient use, for example, combining the rules on seeking resolutions of the unitholders of funds in the notification concerning such matter.

In addition, the rules on private fund management and provident fund management have been separated in specific notifications concerning respective matters for ease of use and future revision. The notifications will be published in the Government Gazette and become effective from 1 March 2021.

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Remark:

Regulatory Guillotine is the regulatory review of the existing laws and regulations. The reviewed laws and regulations that are not necessary or do not keep pace with situations or remain obstacles to living or occupations will be abolished or revised to lessen burden on people. By doing so, methods used must be done with speed, transparency, low costs with participation of all related parties.