On Sep. 8, Thai SEC amended rules on managing provident funds.
Thai SEC issued notification Sor. 52/2564 dated Aug. 20, 2021, which makes amendments to the rules, conditions and methods of provident fund management.
Amendments
Summary of important information re investment policies should be disseminated to the public every 6 months of the calendar year, within 45 days from end of the period.
In the event that the summary of important information re investment policies has changed significantly, the management company shall ensure the public is notified.
Management company shall prepare and submit information re the fund management operation as requested by Thai SEC, delivered by Thai SEC electronic system.
This also applies to multi-employer funds, excluding those under the same group.
Effectiveness
This notification shall come into force from Sep. 16, 2021.
Sep. 13, 2021 Factsheet
On Sep. 13, 2021, Thai SEC issued a notice dated Aug. 30, 2021 about improved rules for disclosing a summary of important information of the investment policy.
To provide relevant and interested parties with information for investment decisions.
Also aims to promote the development of the capital market information system.
Effective from Sep. 16, 2021.
May, 2022 Procedures
On May 3, 2022, Thai SEC advised a review on the understanding of the presentation of the scorecard overseas of provident funds, which invest in Thai mutual funds.
Management companies must to prepare a summary of important information of investment policy (factsheet), containing a list and information formatted as required.
The provident fund factsheet requires benchmark performance, which specifies the principle that only benchmark that reflects the invested asset.
For mutual funds that invest in foreign funds more than 20 percent of their net asset value (NAV), the benchmark is set for the performance of the master fund.
Dec. 2023 Additional Amendments
On Dec. 19, 2023, Thai SEC issued announcement on criteria, conditions, management methods re provident funds, and Thai SEC's announcement 11/2564 of Jan. 29, 2021.
Makes various amendments re same; in addition, this announcement (of Dec. 19, 2023), amends Thai SEC's announcement no. 52/2564 (of Aug. 20, 2021) above.
Multi-employer fund under certain paragraphs does not include multi-employer fund where employers are affiliated with the same company jointly establishing the fund.
Amendments re where management company wishes to increase its investment policy.
In addition, amendments re timing of reporting; list of investment policies must be up-to-date, delivered without delay; announcement (of Dec. 19) is effective Jun. 1, 2024.
On same day, Thai SEC issued related announcement, includes amendment to Thai SEC announcement no. 88/2558 of Dec. 17, 2015; in proposing prescribed investment policy for a provident fund, private fund management companies must disclose.
Namely, must disclose prescribed important information re their investment policies to their clients; this second announcement (of Dec. 19) is effective Jun. 1, 2024 as well.
Documents dated Dec. 19, 2023, received from Thai SEC Dec. 22, summarized Dec. 29.
Jan. 17, 2024 Press Release
On Jan. 17, 2024, Thai SEC issued press release on the revised criteria for disclosing and reporting important information re investment policies and provident funds.
Asset management companies (AMCs) shall disclose factsheets before presenting policies; for pooled funds, factsheets must be shared with members and the public.
AMCs must prepare, submit data reports electronically via Thai SEC-provided system.
Submission timeframe should align with the factsheet submission for provident funds.
Jan. 17, 2024 Additional Thai SEC Comments
On Jan. 17, 2024, Thai SEC guided in relation to improving the criteria for disclosing as well as reporting important information, re the press release above (of Jan. 17, 2024).
Mutual fund companies will be able to test delivery of information via e-reporting system in Apr. 2024, and Thai SEC will provide a manual to guide on using the system.
