According to the Securities and Exchange Commission Thailand, the suitability test would result in better investment services and advice to investors.
Typically, this test covers questions on personal data including the financial status, financial knowledge and experience, investment objective, risk appetite and willingness of investors to take risks.
The test would also include some illustrations on basic asset allocation as per the risk appetites of investors, which the regulator said could act as a guideline for business operators to offer “even more appropriate” investment advice to investors.
The regulator said the standardized suitability test would be applicable for investment in all types of capital market products, including investment units, debt securities, equities, derivatives and provident funds.
Instead of completing the suitability test prior to every investment in a new product, investors can complete one test for investment in all products.
Duangmon Chuengsatiansup, assistant secretary-general said: “Improvement of the suitability test will not only provide the business operators and investors with more convenience, but will also better reflect investor demands.”
