No. 172 / 2014
Monday 01 December 2014
Bangkok, December 1, 2014 – The SEC revealed its 2015 strategic plan focusing on six key developments with the aim of enhancing the integrity and resiliency of Thai capital market, promoting the Thai capital market as a fund raising channel with competitive cost for businesses and foster the Thai capital market as a regional financial connector for fund raising and investment.
Vorapol Socatiyanurak, SEC Secretary-General said that the SEC’s 2015 strategic plan will keep continuing the efforts in the previous years and be more responsive to global megatrends and the implications to the capital market in the next decade, such as volatility of capital flows, direction of the new rules and standards in connection with extraterritorial issues, world financial and economic connectivity with more intensified competition and innovation and technology advancement. The 2015 plan comprises six strategic moves: (1) attaining high regulatory standards on par with internationally accepted standards; (2) enhancing efficiency of preventive measures and enforcement mechanisms in response to technology advancement; (3) increasing market width and depth to promote the Thai capital market as a regional financial connector; (4) promoting market based financing for all businesses, especially small and medium size enterprises (SMEs) and strategic sectors; (5) creating quality investors and promoting financial literacy and capital market knowledge among the public to lessen social inequality; and (6) enhancing SEC efficiency to attain sustainable growth and drive the success of policy implementation.”
Vorapol added that “In support of the Thai capital market to strive forward as a regional financial connector, the SEC will increase capital market product variety, such as relaxing rules on investment of retail and accredited investors in non-investment grade or unrated bonds, issuing regulations on investment in and issuance of financial instruments of the countries in the Greater Mekong Sub-region (GMS). Investors will thus have greater investment alternatives. In addition, the SEC Thailand Academy will be initiated to offer the capital markets in this region the curriculum for capacity building.
The promotion of capital market as an alternative financing channel for business of all types and sizes will be carried on along with the development of financial literacy for people from all walks of life. In 2015, the SEC will launch new regulatory frameworks to support such alternative financing channels including equity crowdfunding regulations.”
Chalee Chantanayingyong, SEC Deputy Secretary-General said, “In 2014, the SEC has accomplished multiple goals simultaneously; for instance, intermediaries and the exchanges’ fundamentals remained sound and solid and thus strengthened their resilience to volatility. On progress of sustainable development, moreover, the Thai capital market obtained the highest corporate governance score among ASEAN countries with outstanding progress on the promotion of corporate social responsibility (CSR) and anti-corruption practices. The “CSR and Anti-corruption Progress Indicators for Thai Listed Companies” were developed and launched, respectively. These efforts will continually be driven forwards with even more constructive outcomes.”
Vasant Thienhom, SEC Deputy Secretary-General said, “The SEC places a high priority on enforcement mechanism. During the past years, the work procedures have been developed while law amendments have been proposed in parallel, such as pushing forward the civil sanctions for the consideration of National Legislative Assembly of Thailand. The proposed amendment of the Securities and Exchange Act of 1992 to introduce the civil sanctions as a new enforcement mechanism will help enhance enforcement efficiency and boost confidence in the Thai capital market.”
Tipsuda Thavaramara, SEC Deputy Secretary-General said, “Collaboration between the SEC and all market participants is needed to help strengthen the Thai capital market’s competitive edge in the international arena. The SEC’s 2015 plan includes self-assessment under the standards of IOSCO (International Organization of Securities Commissions) to ensure that the Thai capital market supervision is in line with international standards. Besides, certain regulations will be revised to cope with systemic risks and volatility of capital flows. Additionally, supervision on offering of financial instruments will be reviewed to strike the right balance between facilitating business operations and fund raising and providing appropriate level of investor protection without imposing undue restrictions on their investment choices.”