In September 2021, the Bank of Thailand (BOT) issued its Guidelines on Data Governance to provide financial institutions with recommendations on how to ensure that their data governance will be in compliance with accepted international principles. While there are no penalties for noncompliance, financial institutions should view the recommendations as minimum standard expectations for their data governance in Thailand. The BOT guidelines set forth five main data governance principles: Data Governance Policy Financial institutions should set forth their data governance policy in writing in accordance with their business size, business operations, business complexity, and data risk. The policy should cover all types of data, including data related to services from third parties or business partners, as well as provide information on the data governance structure, data lifecycle management, protection of data security and data privacy, and incident management. Financial institutions should inform their employees and other relevant parties of the policy to ensure their compliance. In addition, the data governance policy must be approved by the designated board or committee of the financial institution, and be reviewed and revised in response to significant changes. Data Governance Structure Financial institutions should establish a data governance structure with three lines of defense, supervised by an oversight committee. The first line of defense comprises data management personnel, a data approver, and data users; the second comprises a risk management unit and a compliance unit; and the third is an audit unit. While the chosen data governance structure can be tailored to the characteristics of the institution, the structure should cover all of these roles and duties, and must not contravene the principle of checks and balances. The data governance structure should also be supported by sufficient personnel and equipment, as well as a clear plan—reviewed and revised as necessary—for building awareness at

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2021. This guide outlines all of the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Guides to Doing Business series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource when planning an international business strategy or researching a new market.

On September 15, 2021, Thailand’s Securities and Exchange Commission (SEC) announced a prospective new scheme that will enable small and medium enterprises (SMEs) and startups in Thailand to raise funds through public offerings. The SEC regulations to implement this new scheme are expected by the first quarter of 2022. Since 2019, the SEC has allowed SMEs and startups in Thailand to raise funds via private placements or crowdfunding. The new SEC scheme will allow SMEs and startups to raise funds on a larger scale via a new type of public offering (the so-called SME-PO). The SEC also plans to establish the “SME Board,” a secondary market for trading the stocks of SMEs. Under the new SEC scheme, SMEs and startups that wish to proceed with an SME-PO must be structured as public companies with investor protection mechanisms in accordance with the Public Company Act B.E. 2535 (1992). Although SEC representatives have previously indicated that SME-POs would be subject to an information-based approach instead of the normal approval process for public offerings, the September 15 announcement does not detail this further, beyond noting that the SEC may deem it appropriate in future to relax certain requirements such as filing for approval, appointment of an independent financial advisor, and fees. Investors in public offerings for SMEs and startups must be sophisticated investors who are risk-tolerant and well capitalized, such as institutional investors, private equity or venture capital firms, angel investors, or an SMEs’ own directors, employees, or affiliates. Tilleke & Gibbins will continue to follow the development of regulations for SME-POs, as the rules and criteria described here are still subject to change. For more information on fundraising alternatives for SMEs and startups, or on any aspect of capital markets regulations in Thailand, please contact Onunya Chanpen at [email protected] or Kobkit Thienpreecha

The financial year will now run from April 1 to March 31, from the 2022–2023 financial year onward, and October 2021 to March 2022 will be considered an interim budget period.