On Nov. 29, Thai SEC amended regs on provident, private funds.
Thai SEC amended two announcements in order to strengthen regulations for custodians managing client assets, focusing on provident funds and private funds.
Criteria, conditions and methods for managing provident funds (no.5) and Criteria, conditions methods for granting approval to custodians of private fund assets (no. 4).
These updates emphasize system readiness, transparency, and investor protection.
Documents dated Nov. 29, 2024, received from Thai SEC Dec. 16, summarized Dec. 19.
Provident Fund Requirements
Custodians need approved systems to manage fund assets or appoint sub-custodians.
Approval automatic if no objections are raised within 15 days of complete submission.
Custodians handling provident fund assets must ensure accuracy of NAV calculations.
NAV must be determined fairly, consistently, and in accordance with guidelines.
Certified NAV data must be submitted to fund managers within the next business day.
Custodians may delegate NAV verification but remain responsible for compliance.
Private Fund Requirements
Custodians must ensure readiness through additional systems for fair valuation and control of invested assets as well as verification and certification of NAV calculations.
Requirements for NAV certification align with those for provident fund custodians.
Effectiveness
Both announcements take effect on Jan. 1, 2025, subject to specified exceptions.
