While supporting the use of mutual funds as an investment tool, the SEC views it is appropriate to amend the regulations related to the calculation and disclosure of mutual fund fees to enhance investor protection, strengthen business operators' responsibility in setting fees appropriate to the services provided to investors, with transparent and fair disclosure in line with international best practices. The proposed amendment would also increase flexibility for related business operators in determining fee structures matching their service models. The SEC is therefore proposing to amend the relevant regulations by incorporating feedbacks and suggestions from stakeholders during the public hearing in June-July 2025 to make regulatory adjustments suitable for the Thai capital market context and international principles against undue costs.

The proposed amendments to the relevant regulations contain the following key points: 

  (1) Establishing the principle that fee collection must be clear, fair, and aligned with the services provided, including that business operators must have governance mechanisms for monitoring and reviewing fee structures at least once a year, while fund supervisors would be required to review the appropriateness of the fee structure. The SEC has encouraged the Association of Investment Management Companies (AIMC) to issue guidelines following this principle, subject to the SEC consideration, to enable business operators to comply with the principle appropriately;

(2) Introducing performance fee for asset management companies to incentivize favorable returns for investors. This would only apply when such fee is predetermined and separate from the management fee. Additionally, only eligible fund types may charge it and the fee calculation must reflect fund managers’ capability rather than the overall market movements, and the fee collection must be disclosed in fund reports;

(3) Revising the principle for setting and disclosing the management fee to suit the context of Thailand's mutual fund industry, while maintaining the permission for asset management companies to set the maximum management fee and the base management fee with an appropriate gap to create a balance between asset management company flexibility and investor protection. Any increase in the actual management fee must have necessary and reasonable justification, full and transparent information disclosure, and notification to investors at least 15 business days in advance. This is to ensure that investors receive complete information and understand the impact of fees on investment decisions. Additionally, fee reduction for promotional purposes must be clearly defined and restricted up to one year;

(4) Requiring asset management companies that pay compensation in the form of trailer fees to brokerage agents to consider with care and fiduciary duties that fees are appropriate to the services investors receive (fee for reasons), not causing undue costs or incentives for conflicts of interest (COI). To suit the Thai capital market context, the SEC requires asset management companies to clearly state in the fund prospectus whether any trailer fees are paid to brokerage agents with explanation of the purposes, impacts on investors and related services; and

(5) Improving sales conduct standards by requiring brokerage agents to prepare complete and accurate sales documents, clearly disclose fees, conditions, COI warnings, and details of trailer fee received, establish measures to prevent COI from compensation structures, and provide ongoing customer care consistent with the fees received.

The public consultation is available at the SEC website: https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1123 and the legal hub: https://law.go.th/listeningDetail?survey_id=NjE2NERHQV9MQVdfRlJPTlRFTkQ=. Stakeholders and interested parties are invited to submit their comments and suggestions via the websites or email: vathunyur@sec.or.th, suppawit@sec.or.th or jirapathara@sec.or.th. The public hearing ends on 21 December 2025.