On Mar. 4, 2025, Thai SEC issued regulatory updates to enhance transparency, mutual fund investments oversight, particularly concerning L&I ETFs, re the proposals above.
Issued announcement no. Thor Nor. 9/2568 on Fund investments (No 30), Thor Nor. 10/2568 on Establishment of mutual funds for general investors and non-retail investors, and the execution of personal fund management agreements (No. 18).
Sor Nor. 3/2568 on Details of mutual fund management projects (No. 7).
Sor Nor. 4/2568 on the Prospectus for offering investment units of mutual funds for general investors, non-retail investors, and institutional investors (No. 7).
Sor Nor. 5/2568 on Criteria, conditions, and methods for managing mutual funds for general investors, non-retail investors, and institutional investors (No. 9).
Sor.Thor. 6/2568 on Detailed criteria for customer contact and services for securities business operators and futures trading business operators (No. 16).
The updates are effective from Mar. 16, 2025.
On Nov. 22, Thai SEC proposed rules re leveraged and inverse ETFs.
Thai SEC proposed revision to regulations to support leveraged and inverse ETFs (L&I ETFs), aiming to diversify investment options, enhance risk management capabilities.
Proposed Regulations
Leveraged ETFs amplify daily returns of reference index, inverse ETFs provide returns opposite to index, requiring daily portfolio adjustments due to compounding effects.
Proposed regulations include capping leverage ratios at 2x, mandating clear disclosure of strategies, risks, fees, performance simulators, and restricting trading of L&I ETFs.
Securities firms must ensure investors understand risks and have adequate knowledge before trading and implement monitoring mechanisms to support risk management.
Consultation Period
The consultation period will be closed on Dec. 22, 2024.
Mar. 2025 Revised Criteria to Support L&I ETFs
On Mar. 4, 2025, Thai SEC issued regulatory updates to enhance transparency, mutual fund investments oversight, particularly concerning L&I ETFs, re the proposals above.
Issued announcement no. Thor Nor. 9/2568 on Fund investments (No 30), Thor Nor. 10/2568 on Establishment of mutual funds for general investors and non-retail investors, and the execution of personal fund management agreements (No. 18).
Sor Nor. 3/2568 on Details of mutual fund management projects (No. 7).
Sor Nor. 4/2568 on the Prospectus for offering investment units of mutual funds for general investors, non-retail investors, and institutional investors (No. 7).
Sor Nor. 5/2568 on Criteria, conditions, and methods for managing mutual funds for general investors, non-retail investors, and institutional investors (No. 9).
Sor.Thor. 6/2568 on Detailed criteria for customer contact and services for securities business operators and futures trading business operators (No. 16).
