Bangkok, 5 May 2022 – The Securities and Exchange Commission (SEC) is seeking public comments on a proposed amendment to the regulations related to the definition of high net worth investor used for infrastructure funds and trust unit offering to ensure suitability and consistency with the investor’s qualifications and risk profile.
The
SEC has recently issued a rule revising the definitions of institutional
investor, ultra-high net worth investor and high net worth investor* used for
investment in financial products under the SEC’s supervision. Under the new
rule, which will become effective from 1 October 2022 onwards, the qualifications
of such investors are amended to incorporate an aspect of adequate financial
knowledge and relevant experience as a means to further gauge investors’
ability to take risks. The new rule will also allow investors to access a more
diverse range of products and businesses to gain more fundraising opportunities.
The SEC is therefore proposing to revise the definition
of high net worth investor of infrastructure funds and infrastructure trusts as
well from an individual who subscribes for investment units or trust units for
the first time at an amount not less than 10 million baht (pursuant to the
Notifications on infrastructure funds and infrastructure trusts**) to the new
definition which is in line with what is stated in the aforesaid new rule. This
is to ensure suitability and consistency with the investor’s qualifications and
ability to accept associated risks.
The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=794. Stakeholders
and interested parties are welcome to submit comments and recommendations via
the website or email: duangkamol@sec.or.th, pitchal@sec.or.th, or nuchanat@sec.or.th. The public hearing ends on 19 May
2022.
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Remarks:
*
The Notification of the Securities and Exchange Commission No. Kor Jor. 39/2564
Re: Determination of Definitions of Institutional Investor, Ultra-High Net
Worth Investor and High Net Worth Investor, dated 24 December 2021: https://publish.sec.or.th/nrs/9265p_r.pdf.
** The Notification of the Capital Market Supervisory Board No. Tor Nor.
38/2562 Re: Rules, Conditions and Procedures for Establishment and Management
of Infrastructure Fund, dated 25 April 2019: https://publish.sec.or.th/nrs/8982p_r.pdf, the Notification of the Capital
Market Supervisory Board No. Tor Jor. 12/2558 Re: Issuance
and Offering for Sale of Trust Units of Infrastructure Trust, dated 9 April 2015: https://publish.sec.or.th/nrs/6529p_r.pdf, and the Notification of the Capital
Market Supervisory Board No. Tor Jor. 20/2561 Re: Rules, Conditions and
Procedures for Reporting Disclosure of Mutual Fund and Real Estate Investment
Trust or Infrastructure Trust, dated 19 February 2018: https://publish.sec.or.th/nrs/8013p_r.pdf.