On Oct. 21, Thai SEC proposed revision on fund management rules.
Thai SEC proposed amendments to the regulations for provident fund (hereafter, PVD) management in order to enhance fund supervision in line with current situations.
Overview of Proposal
Asset management companies (AMCs) must ensure that fund articles, requirements comply with relevant laws, particularly regarding investment policy switching.
Provides that PVD members can switch investment policies up to four times per year per fund, with additional conditions applied if more frequent switching is offered.
AMC would be required to comply relevant regulation related to management of the remittance of funds, calculation methods, disclosure of investment unit information.
AMCs are required to establish liquidity risk management policies and tools for PVDs, similar to those for mutual funds; these tools should be adaptable, applied as needed.
Custodians must have adequate systems for verifying the NAV of PVDs; custodians are required to provide verified NAV information to AMCs within the next business day.
Custodians registered as NAV verifiers are considered compliant with new criteria.
Effectiveness
The consultation is open until Nov. 20, 2024.
Dec. 2024 Regulations Revised
On Dec. 18, 2024, Thai SEC published revised criteria for managing provident funds to increase the protection of rights and fairness among members, increase efficiency in fund management and risk management, and enhance supervision of provident funds.
The amendment to the provident fund management criteria was announced in the Government Gazette on Dec. 16, 2024 and will be effective from Jan. 1, 2025.
Except for the criteria on the exchange of investment policies of the fund and the determination of guidelines and the use of LMTs, which is effective from Jan. 1, 2026.
