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Published on October 5, 2007

"The SEC has set a policy of permitting mutual-fund operators to apply to launch short-term fixed-income funds and funds of less than one-year maturity through self-registration. Interested service providers are required to seek SEC approval for prototypes and eligible to launch an unlimited number of the same kind of prototype within one year of approval," secretary-general Thirachai Phuvanatnaranubala said in a statement.

"Automatic SEC approval will take effect immediately after the fund operators submit accurate and complete documents. This can save mutual-fund operators time and allow them greater convenience in selling unit trusts."

The self-registration system was one among several topics discussed at the quarterly meeting between the securities watchdog and the Association of Investment Management Companies (AIMC).

Thirachai said it was essential for regulators to meet regularly with the corporate sector, in order to exchange views and listen to their problems in doing business.

"At the meeting, we agreed that approval procedures were becoming a hindrance. Investors are showing increasing interest in mutual funds, and the number of applications to set them up has proliferated," he said.

The securities watchdog encouraged directors of mutual-fund service providers to enrol in a course to be developed by the Institute of Directors, so as to give them insight into their roles and duties concerning corporate governance.

He said the AIMC was discussing with its members the standardisation of guidelines for vote-casting by mutual-fund operators in shareholders' meetings of listed companies.

AIMC vice chairman Teeraphan Jittalarn said the guidelines would be announced next month.

"The association is setting standard guidelines for voting against or abstaining on important agenda items, and this will be a boon to listed companies in improving their information disclosure and management. This can give mutual-fund operators a level of transparency that unit-trust holders can verify," he said.

Siriporn Chanjindamanee

The Nation