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SEC to allow Asean CIS cross-border offering to retail investors

The board of Securities and Exchange Commission (SEC) has approved draft regulations for the offering of Asean Collective Investment Schemes (Asean CIS) to retail investors in Thailand. The offering is expected to become effective by the second quarter of this year, according to SEC secretary-general Vorapol Socatiyanurak.

The ASEAN CIS offered to retail investors in Thailand must be approved by capital market regulators and have been offered to retail investors in other home jurisdictions of Asean members. The scheme must also conform to the common standards on Standards of Qualifying CIS in terms of the qualifications of CIS operator and fund supervisor as well as investment requirements.

The offering of ASEAN CIS will be made through securities companies in Thailand and in compliance with disclosure rules comparable to the offering of investment units issued by general mutual funds in Thailand, such as the requirements for prospectus, fact sheet and annual report. In addition, a local representative or representative office will be required for the purposes of general administration and cooperation; for instance, publishing unit pricing, distributing reports to unit-holders, and managing dispute resolution.

"The SEC in 2012 issued regulations on the offering of Asean CIS to non-retail investors. This new regulation will be a codified set of new and existing regulations to accommodate both offerings to retail and non-retail investors. The greater extent of offerings to retail investors will not only widen investment alternatives, but also expand business opportunities for mutual fund operators and drive integrated regional capital markets," Vorapol said.

The cross-border offering of Asean CIS in Asean member countries has been developed under the "Implementation Plan to promote the Development of an Integrated Capital Market to achieve the objectives of the AEC Blueprint 2015." The Implementation Plan aims to create linkages among Asean capital markets and facilitate cross-border securities offerings, which will boost the Thai and ASEAN capital markets' competitive edge in the international arena.


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