On Feb. 5, 2025, Thai SEC issued circular to clarify the investment ratio of DA.
Thai SEC explained that mutual funds and private funds with existing investment policies in digital assets must comply with new rules in the Dec. 2024 circular above.
Mutual funds for general investors (retail-MF) must adjust their investment ratios so that net exposure to crypto assets does not exceed 5% of the fund's net asset value.
All necessary adjustments, including updates to fund management details and prospectuses, must be completed within 90 days, by Apr. 16, 2025.
Document dated Feb. 5, 2025, received from Thai SEC Feb. 17, summarized Feb. 20.
On Dec. 24, Thai SEC revised rules on mutual funds re crypto assets.
Thai SEC revised rule no. TorNor. 87/2558 relating to investment of funds (no. 29).
Follows Thai SEC Jan. 2021 issued rules on fund investment (no. 20), see #96345.
On same day, Thai SEC revised rules for mutual funds re crypto assets, see #238745.
Document dated Dec. 24, 2024, received from Thai SEC Dec. 27, summarized Jan. 2, 2025.
Amendments
Add the definitions of personal fund for general investors and personal fund for non-retail investors, crypto asset, utility token, investment token, units of foreign funds.
For mutual funds for general investors or mutual funds for non-retail investors, indirect investment in crypto assets can only be specified if the indirect investment policy in crypto assets is clearly stated in the project from the date of mutual fund approval.
Except for mutual funds with investments, whether direct or indirect, in digital assets as per law governing digital asset businesses, already legally held on Jan. 15, 2025.
Or revised project reinvestment policy in crypto assets completed by Apr. 16, 2025.
Specifies criteria for a fund to invest in crypto assets or digital tokens for investment.
Amends appendices regarding terminology, assets that funds can invest in, fund classification, investment ratios for retail mutual fund, and calculation of ratios.
Effectiveness
The amendments will be effective from Jan. 16, 2025.
In Dec. 2024, Thai SEC revised criteria of mutual fund re crypto assets, see #238901.
Jan. 2025 Investment Criteria
On Jan. 16, 2025, Thai SEC summarized the recent amendments regarding the investment criteria for mutual funds and private funds in digital assets (DA).
Add investment tokens as assets that funds can invest in, specifies investment ratios.
Increase flexibility for funds to invest in crypto assets subject to investors' risk level.
Funds for ultra-high net worth can invest in crypto ETFs without investment ratio limit, to create equality between securities companies and asset management firms.
Funds for retail investors with active management strategies can invest in crypto assets through ETFs or foreign mutual funds of not exceeding 5% of net asset value.
Improve relevant criteria to support management of funds investing in DA, such as asset custody, information disclosure, advertising, and improving the investment suitability assessment form ( suitability test) to cover investment in crypto assets.
The amendments are effective from Jan. 16, 2025.
Feb. 2025 Investment Ratio Clarification
On Feb. 5, 2025, Thai SEC issued circular to clarify the investment ratio of DA.
Thai SEC explained that mutual funds and private funds with existing investment policies in digital assets must comply with new rules in the Dec. 2024 circular above.
Mutual funds for general investors (retail-MF) must adjust their investment ratios so that net exposure to crypto assets does not exceed 5% of the fund's net asset value.
All necessary adjustments, including updates to fund management details and prospectuses, must be completed within 90 days, by Apr. 16, 2025.
Document dated Feb. 5, 2025, received from Thai SEC Feb. 17, summarized Feb. 20.
