The rules will apply to mutual funds, private funds for retail investors, and provident funds.
It hopes the revisions will bring Thailand “in line with international standards”.
The changes include expanding underlying assets of derivatives and structured notes to cover all investible assets.
Pre-approval requirements for investments into structured notes will also be removed.
Funds investing in complex derivatives and structured notes will now be required to employ a value-at-risk approach in determining global exposure, to better reflect to market risk.
Also, funds must run stress tests and back tests along with disclosing information on value-at-risk in a semi-annual or annual report.
“The revisions will support the fund’s investment strategy in derivatives and structured notes, which will not only widen investment channels for the funds, but also provide investors with greater investment choices,” said Vorapol Socatiyanurak, SEC Secretary-General.
“The SEC feels that regulatory development will boost the competitive edge of the Thai capital market and the industry, responsive to global changes and connectivity.”
