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Bangkok, May 13, 2013 – The companies aiming to broker a variety of investment units offered by different asset management companies will be eligible to apply for Type D license. Certain requirements and a minimum of 10 million baht in paid-up capital will also be applicable. Meanwhile, annual license fee will be lowered for the all Type D licenses brokering at least 3 types of the investment unit schemes from at least 10 asset management companies.
SEC Secretary-General Vorapol Socatiyanurak said that the SEC will allow the companies intending to broker the investment units to apply for the Type D license (limited brokerage, dealing or underwriting of investment units). The minimum paid-up capital requirement will be lessen from 100 million baht to 10 million baht for the applicant that has no client’s assets in custody, no proprietary trading, and no responsibility in clearing and settlement of securities. In addition, the lower rate of annual license fee will be offered for companies selling at least 3 types of the mutual funds; such as fixed-income funds, equity funds and mixed funds, from at least 10 asset management companies.
The companies operating other businesses will be eligible to apply for the Type D license under the specified requirements; for example, their businesses must be relevant, supportive or beneficial to the applying securities business without any conflicts of interest. While current regulation only allows the securities companies, commercial banks, insurance companies, and newly-established companies to apply, the amendment to the Ministerial Regulations concerning undertaking of securities business will be proposed to the Ministry of Finance.
The revisions will help promote investment unit brokerage. The more service providers, the greater access to a variety of financial services and investment choices will be available to serve investors’ risk appetite. Also, the investors will have wider opportunities to obtain a wide-range investment advice from independent business operators.
“Increased investor access to the capital market will help boost public awareness in the importance of personal finance. It will contribute to a rising numbers of investors, of course, not only in investment units but in other financial products as well. For business operators, it is such an excellent opportunity to utilize all channels to the fullest extent possible for customer base expansion in preparation for more intense competition. At the end, Thai capital market will be more developed both in horizontal and vertical dimensions,” said Mr. Vorapol.