The Securities and Exchange Commission of Thailand (SEC) will refresh its definitions of institutional, high-net-worth (HNW), and ultra-high-net-worth (UHNW) investors according to its recently issued Notification No. Kor Jor 39/2564, effective on October 1, 2022. The key changes to these classifications are described below.
The SEC’s list of types of institutional investors will be expanded by the addition of the following four types:
These changes reflect a more modernized approach to defining types of investors, such as by adopting internationally accepted terms like “angel investor.”
HNW and UHNW Investors
In general, the new notification lowers financial thresholds for the definitions of HNW and UHNW investors. This suggests that the SEC wants to expand the number of investors who can access high-risk securities and derivatives.
Under the new notification, HNW investors include individuals with net assets of at least THB 30 million, annual income of at least THB 3 million, or gross direct investment in securities and derivatives of at least THB 8 million (or THB 15 million if cash deposits are aggregated).
UHNW investors include individuals with net assets of at least THB 60 million, annual income of at least THB 6 million, or gross direct investment in securities and derivatives of at least THB 15 million (or THB 30 million if cash deposits are aggregated).
The new notification will come into effect on October 1, 2022. In the transition period before then, Thai and overseas securities companies, asset management companies, and other issuers and intermediaries, both in Thailand and in other countries, should update their offering documentation to ensure it is consistent with the new definitions.
For more information on these definitions, or on any aspect of Thai investment rules, please contact Kobkit Thienpreecha at [email protected] or +66 2056 5534, Nutavit Sirikan at [email protected] or +66 2056 5510, or Thammapas Chanpanich at [email protected] or +66 2056 5561.