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Asean Collective Investment Scheme to be launched in July

The Securities and Exchange Commission is paving way for the offering of securities under the Asean Collective Investment Scheme (Asean CIS) in Thailand, with the new set of rules to take effect in July.



The Securities and Exchange Commission is paving the way for the offering of securities under the Asean Collective Investment Scheme (Asean CIS) in Thailand, with the new set of rules to take effect in July.

The Asean CIS comes under the implementation plan for Asean Capital Markets Integration in 2015 and is aimed at facilitating crossborder securities offerings in the region, strengthening the potential of Asean capital markets and providing more alternatives to nonretail investors in Thailand. The securities will however be first sold only to "accredited investors" or only institutional and high net worth investors.

SEC Secretary General Vorapol Socatiyanurak said that securities offered under the schemes must share the same characteristics of mutual funds established in Thailand. The underwriters, or local securities firms, will need to verify that buyers are the accredited investors and transaction orders must be taken at the same time as when the securities transactions are executed in the home country.

"Asean CIS is a new option for investors looking for overseas opportunities. The offering in the initial period will be limited to institutional and high net worth investors, as they are able to guard against risks and evaluate investment risks. This is also an opportunity for Thai mutual fund companies to learn about mutual fund establishment overseas and develop their business. This will also expand securities companies' client base," Vorapol said.

The SEC is looking to allow the offering to retail investors later this year.


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