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SEC public hearing on proposed amendments to the regulations for PVD management to enhance fund supervision in line with current situations



Monday 21 October 2024 | No. 217 / 2024


Bangkok, 21 October 2024 – The Securities and Exchange Commission (SEC) is seeking public comments on proposed principles and draft amendments to the regulations for the management of provident funds (PVD), which cover improvement of the work process and operation related to switching of investment policy, liquidity risk management policy and tools (LMTs), and verification of the net asset value (NAV) of PVD by the custodian. The proposed amendments aim to enhance the PVD oversight to be more suitable for the current industry context.  

The SEC aims to improve the PVD supervision to be more suitable for the current context, providing protection to PVD members in a fair and transparent manner. Related business operators are encouraged to operate more efficiently for the best interests of the PVD members. This is to ensure that PVD serves as a long-term savings and investment mechanism to support retirement planning.

On 15 October 2024, the Capital Market Supervisory Board Meeting No. 10/2024 passed a resolution approving in principle the proposed amendments to the PVD management regulations. The SEC is therefore conducting this public hearing on the proposed principles and draft amendments, with the key points as follows:   
          (1) To improve the work process and operation related to investment policy switching: Requiring asset management companies (AMC) to review that the fund’s articles and other relevant requirements are abided by the relevant laws and regulations, particularly, the investment policy switching premises to offer PVD members up to four times per year per fund. In case the fund’s articles and other relevant requirements offer more than four times per year per fund, some specified conditions will be applied. In addition, AMC would be required to comply with relevant regulation related to management of the remittance of funds, calculation methods, and disclosure of investment unit information to PVD members;
          (2) To establish liquidity risk management policy for PVD: Requiring AMC to have liquidity risk management policy and tools (LMTs) for PVD, similar to the LMTs guidelines for mutual funds. AMC can select and apply these tools as necessary, in accordance with the situation, ensuring they are appropriate and effective;  
          (3) To require the custodians to verify NAV of PVD : Requiring the custodians responsible for safeguarding the assets of PVD to additionally establish an adequate system for NAV verification and verify the NAV of the PVD. Additionally, the above-mentioned custodians would have to provide the verified NAV-relevant information to AMC within the next business day after receiving all necessary data, unless there are valid reasons for requesting an extension from the SEC. In this regard, the private fund custodians who are currently registered as NAV verifiers are considered to have already complied with these criteria.     

The consultation paper is available at the SEC website: https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1023 and the legal hub: https://law.go.th/listeningDetail?survey_id=NDQ5OERHQV9MQVdfRlJPTlRFTkQ=. Stakeholders and interested parties are welcome to submit comments and suggestions via the websites or email: anoma@sec.or.th, kodchawan@sec.or.th or sirinad@sec.or.th. The public hearing ends on 20 November 2024.     
 

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Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 217 / 2024 Monday 21 October 2024
SEC public hearing on proposed amendments to the regulations for PVD management to enhance fund supervision in line with current situations

Bangkok, 21 October 2024 – The Securities and Exchange Commission (SEC) is seeking public comments on proposed principles and draft amendments to the regulations for the management of provident funds (PVD), which cover improvement of the work process and operation related to switching of investment policy, liquidity risk management policy and tools (LMTs), and verification of the net asset value (NAV) of PVD by the custodian. The proposed amendments aim to enhance the PVD oversight to be more suitable for the current industry context.  

The SEC aims to improve the PVD supervision to be more suitable for the current context, providing protection to PVD members in a fair and transparent manner. Related business operators are encouraged to operate more efficiently for the best interests of the PVD members. This is to ensure that PVD serves as a long-term savings and investment mechanism to support retirement planning.

On 15 October 2024, the Capital Market Supervisory Board Meeting No. 10/2024 passed a resolution approving in principle the proposed amendments to the PVD management regulations. The SEC is therefore conducting this public hearing on the proposed principles and draft amendments, with the key points as follows:   
          (1) To improve the work process and operation related to investment policy switching: Requiring asset management companies (AMC) to review that the fund’s articles and other relevant requirements are abided by the relevant laws and regulations, particularly, the investment policy switching premises to offer PVD members up to four times per year per fund. In case the fund’s articles and other relevant requirements offer more than four times per year per fund, some specified conditions will be applied. In addition, AMC would be required to comply with relevant regulation related to management of the remittance of funds, calculation methods, and disclosure of investment unit information to PVD members;
          (2) To establish liquidity risk management policy for PVD: Requiring AMC to have liquidity risk management policy and tools (LMTs) for PVD, similar to the LMTs guidelines for mutual funds. AMC can select and apply these tools as necessary, in accordance with the situation, ensuring they are appropriate and effective;  
          (3) To require the custodians to verify NAV of PVD : Requiring the custodians responsible for safeguarding the assets of PVD to additionally establish an adequate system for NAV verification and verify the NAV of the PVD. Additionally, the above-mentioned custodians would have to provide the verified NAV-relevant information to AMC within the next business day after receiving all necessary data, unless there are valid reasons for requesting an extension from the SEC. In this regard, the private fund custodians who are currently registered as NAV verifiers are considered to have already complied with these criteria.     

The consultation paper is available at the SEC website: https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1023 and the legal hub: https://law.go.th/listeningDetail?survey_id=NDQ5OERHQV9MQVdfRlJPTlRFTkQ=. Stakeholders and interested parties are welcome to submit comments and suggestions via the websites or email: anoma@sec.or.th, kodchawan@sec.or.th or sirinad@sec.or.th. The public hearing ends on 20 November 2024.     
 

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