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March 8, 2017

Thailand: New SEC Notifications Provide Clarity on Investor Categories and Regulatory Requirements for Investment Advisory Services

Since the beginning of this year, the Securities and Exchange Commission (SEC) has been actively reforming its regulations in response to the changing landscape and development of the country’s capital market.

On January 12, 2017, the SEC issued the Notification of the Securities and Exchange Commission Kor. Jor. 4/2560 on Determination of Definitions of Institutional Investors, Special High Net Worth Investors, and High Net Worth Investors. This notification revoked the Notification of the Securities and Exchange Commission Kor. Jor 9/2555, issued on July 9, 2012. The aim of the new Notification is to provide new definitions of investors that fall into the categories of Institutional, Special High Net Worth, and High Net Worth, and it is a main reference for any SEC Notifications that mention these key terms but do not include specific definitions.

Moreover, the SEC promulgated the Notification of the Securities and Exchange Commission Kor. Thor. 1/2560 on Determination of Public Advising Which Is Not Classified as a Securities Business in the Category of Investment Advisory Services (as amended by Kor. Thor 8/2560). These Notifications revoke several Notifications in the same category and set out various scenarios that allow investment advisory services to be provided without triggering licensing requirements, such as providing advice exclusively to Thai institutional investors. In addition, the Notifications allow foreign securities firms to provide advice to Thai investors through Thai-licensed intermediaries if they are able to meet certain requirements prescribed in the Notifications.

As Thailand’s capital market continues to mature, many new notifications from the SEC will continue to pursue the paramount goals of investor protection in tandem with the liberalization of the capital market.

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