-Unofficial translation-

Ministerial Regulation Concerning Approval on Undertaking Securities Business License
in the Category of Investment Advi​sory Service B.E. 2545  
 
 
 

By virtue of Section 7 and the fourth paragraph of Section 90 of the Securities and Exchange Act B.E. 2535, which is an Act containing provisions in relation to restrictions of rights and liberties of persons, in respect of which Sections 29 in conjunction with Sections 35, 36, 45, 48, and 50 of the Constitution of the Kingdom of Thailand allow to be done by virtue of provisions of law, Finance Minister hereby issues Ministerial Regulation as follows -

 
 
Clause 1 Person eligible to apply for securities business license in the category of investment advisory service under this Ministerial Regulation shall be any of the followings-

 

(1) commercial bank under law on commercial banking;
(2) finance company under law on undertakings of finance business, securities business and credit foncier business;
(3) securities company under law on securities and exchange ;
(4) life insurance company under law on life insurance;
(5) financial institution established under specific law; or
(6) newly established limited company or public limited company to undertake securities business in the category of investment advisory service under this Ministerial Regulation.
 

 

Clause 2 Applicant for securities business license in the category of investment advisory service which is a legal entity under Clause 1(1) to (5) shall-
(1) be able to maintain capital funds and set aside reserve capital in accordance with law controlling business undertaking of such legal entity;
(2) be able to show that its operational system will be prompt for operating securities business in the category of investment advisory service;
(3) be able to show that its human resource will be prompt and adequate with a view to responsibility for investment advisory service.

 

 
Where the applicant for securities business license in the category of investment advisory service is a branch of foreign commercial bank or a foreign life insurance company licensed under law on commercial banking or law on life insurance, such branch of foreign commercial bank or foreign life insurance company shall also have qualifications specified under the first paragraph.
 
 
 

Clause 3 Applicant for securities business license in the category of investment advisory service which is a legal entity under Clause 1(6) shall have qualifications specified under Clause 2(2) and (3). In case where the applicant under the first paragraph has a legal entity under Clause 1(1) to (5) held its shares exceeding ten percent of total shares sold, such legal entity shall also have qualifications specified under Clause 2(1).

 

Clause 4 Any legal entity under Clause 2(1) to (5) intending to apply for a securities business license in the category of investment advisory service shall file an application with the SEC Office within the period of time, in form and together with the supplementary documents as specified in the SEC’s Notification.

 
  

Clause 5 Any person intending to apply for approval to establish a limited company or public limited company to undertake a securities business in the category of investment advisory service shall file an application with the SEC Office within the period of time, in form and together with the supplementary documents as specified in the SEC’s Notification.

 
 

Clause 6 In case where the SEC is of the view that limited company or public limited company so established has qualifications as specified in this Ministerial Regulation, the SEC shall recommend the Minister to grant his approval on the establishment of such limited company or public limited company within ninety days from the date on which the SEC Office receives complete application and supplementary documents.

 
The Minister shall complete his consideration for approval on the establishment of limited company or public limited company under the first paragraph within thirty days from the date of receiving the SEC’s recommendation.

 

 

Clause 7 Upon the Minister’s approval under Clause 6, the approved person shall proceed with establishment of new limited company or public limited company for operating securities business in the category of investment advisory service as approved, and the newly established limited company or public limited company shall file the application for securities business license in the category of investment advisory service with the SEC Office within sixty days from the date on which the approval is granted, provided that the application shall be in form specified in the SEC’s Notification. In case where the approved person fails to establish new limited company or public limited company or fails to file the application for license within the period of time specified under the first paragraph, such approval shall be terminated.

 

 

Clause 8 In connection with applying for securities business license in the category of investment advisory service under this Ministerial Regulation, the competent officer shall, upon the applicant’s consent, enter into the applicant’s place of business or premises or any place necessary for inspecting the applicant’s financial condition, business operation, assets or any relevant data. 

 
 

Clause 9 In case where the SEC is of the view that the applicant under Clause 7 has qualifications as specified in this Ministerial Regulation, the SEC shall recommend the Minister to make consideration regarding issuance of license within thirty days from the date on which the SEC Office receives complete application and supplementary documents. The Minister shall complete his consideration within thirty days from the date of receiving the SEC’s recommendation. Securities business license in the category of investment advisory service shall be in form specified in the SEC’s Notification.

 
  

Clause 10 The licensee to operate securities business in the category of investment advisory service shall commence securities business operation after the SEC Office, having completed its inspection, is of the view that the licensee has already provided arrangements for its operational system and human resources promptly for operating securities business in the category of investment advisory service as specified in Clause 2 of Clause 3, as the case may be. 

 

Clause 11 Fees shall be prescribed as follows:
(1) application for securities business license in the category of investment advisory service Baht 10,000
(2) securities business license in the category of investment advisory service Baht 10,000
The licensee shall pay license fee on the date of obtaining the license.

 

 
 

Given on the date of 31st January B.E. 2545

 
 
Somkid Jatusripitak
 
Finance Minister 
 

 
 
 
 

This English version is prepared by Legal Department with the sole purpose of facilitating the comprehension of foreign participants in the SEC’s rules and regulations and shall not in any event be construed or interpreted as having effect in substitution for or supplementary to the Thai version thereof.

 

 
Please note that the translation has not been subjected to an official review by the SEC Office. The SEC Office, accordingly, cannot undertake any responsibility for its accuracy, nor be held liable for any loss or damages arising out of or in connection with its use.