The securities companies may jointly establish a non-profit association relating to securities businesses with the objectives of promoting the operation of securities businesses by the virtue of provisions under the Securities and Exchange Act B.E 2535 only. In so doing, the association must acquire a license and register with the SEC.
The SEC supervises the operation of the associations to ensure that the association
oversees the members, and carries out the duties with efficiency, fairness and transparency;
focuses on promoting and developing the operation of the securities businesses.
At present, three associations related to the securities business are as following:
The provisions under Trade Association Act B.E 2509 regarding the operation, control, dissolution and the penalty provisions are applied, mutatis mutandis, to regulate the related associations.
Trade Associations Act B.E 2509
Securities and Exchange Act B.E 2535
The Securities and Exchange Commission
The SEC Office
Associations related to securities businesses
Summary of major provisions in supervising the related associations
The SEC has the power to make an order for the directors or members to clarify about facts of the associations.
The SEC or the officers are empowered to enter the association during the working hours of the associations for inspections. The related persons should facilitate assistance and convenience reasonably.
The associations shall prepare and maintain a copy of a membership register at the association office, and furnish a copy of the register to the SEC. With an admission of new members or any changes to the membership register, the associations shall notify the SEC within the specified period.
The associations shall prepare a balance sheet once in every twelve-month period, and an annual report on results of the operation to be presented to the general meeting of the associations. A copy of balance sheet and the annual report must be submitted to the SEC by the specified period.
Amendments or addition to the articles of the associations can be made with a resolution of the general meeting and must be registered with the SEC within a specified period.
Appointments or changes of directors of the associations must be registered with the SEC within a specified period. In case the SEC views that the appointed directors have infamous conducts, or there is a cause to reasonably suspect of their being threats to the economy and stability of the country or to the public order or morality, the SEC has the power to refuse registering the persons as directors of the association.
When it is apparent that the board of directors, directors or members of the associations undertake any actions that may be harmful to the country economy, stability, public order or morality, the SEC has the power to issue a written order instructing the board of directors, the directors or the members to stop or rectify such actions within a specified period.