The SEC has reviewed the existing criteria governing liquidity risk management tools for mutual funds and has also studied regulatory approaches adopted in other jurisdictions. The SEC is of the view that greater flexibility in fund management, together with clearer disclosure requirements, would be appropriate and consistent with the evolving operational context of mutual funds. Accordingly, the SEC proposes revisions to the relevant criteria, the key elements of which are summarized as follows:

1. Revisions to the criteria on side pocket to enhance flexibility and efficiency in asset management and to ensure appropriate redemption for unitholders when the assets regain quality or become tradable under normal circumstances, as follows:

- Providing AMCs with additional options to make payments to unitholders in the form of cash or units within an appropriate timeframe, thereby supporting investment continuity for unitholders;

- Prescribing criteria for the calculation of expenses arising from the management of side pocket assets to ensure appropriateness and transparency, in accordance with the terms and conditions disclosed to unitholders;

- Requiring systematic and standardized disclosure of information relating to side pocket operations, to enable unitholders to continuously monitor the status and progress of the assets.

2. Revisions to the criteria on suspension of dealing, requiring AMCs to clearly and comprehensively disclose relevant information to investors when such a tool is implemented, in order to ensure that investors receive equal access to information in circumstances where it is necessary to suspend subscriptions or redemptions of investment units.

In addition, the SEC has reviewed and proposed principles to improve the criteria governing disclosure requirements for SRI Funds to ensure greater consistency and clarity, as well as flexibility in cases where information needs to be updated. These improvements aim to ensure that investors are provided with sufficient and timely information to support their investment decisions and to enable transparent monitoring of fund operations. The key elements are summarized as follows:

1. Revisions to the disclosure items in the scheme particulars, requiring SRI Funds to disclose references to sustainability-aligned benchmarks in the full prospectus and the summary prospectus (factsheet), instead of in the scheme particulars. This approach is intended to provide operational flexibility in cases where a mutual fund needs to change its benchmark. In addition, the disclosure items in the scheme particulars will be revised and reordered to ensure consistency with other relevant regulatory criteria.

2. Disclosure of information regarding shares under the Corporate Value Enhancement Program for Listed Companies (Jump+ Project), requiring Thailand ESG Funds (Thai ESG) and Thailand ESG Extra Fund (Thai ESGX) to disclose information on investments in JUMP+ shares in the factsheet under the Sustainability Corner. This is intended to ensure that investors are provided with sufficient information to support informed investment decisions and to enable transparent monitoring of mutual fund operations.

Accordingly, the SEC is seeking public comments on the proposed principles for revising the relevant regulatory criteria.  The consultation paper is available on the SEC website https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1159 and on the Legal Hub at https://law.go.th/listeningDetail?survey_id=NzAwN0RHQV9MQVdfRlJPTlRFTkQ= Stakeholders and interested parties are invited to review the consultation paper and submit comments through the websites or by email to tanyanan@sec.or.th pornpong@sec.or.th chanthamon@sec.or.th and parnward@sec.or.th. The public hearing ends on 5 June 2026.

Notes:

* Side pocket refers to the segregation of assets in cases where a debt instrument issuer or a debtor under a claim is in default or exhibits circumstances that may lead to a default, or the segregation of assets in cases where the invested instruments experience liquidity issues or cannot be disposed of at a reasonable price. In this regard, unitholders whose names appear on the unit register as of the segregation date shall be entitled to receive redemption payments at a later date.

** Suspension of dealing means the suspension of subscriptions and redemptions of mutual fund units by an asset management company in the event of unforeseeable circumstances pursuant to Clause 25/3(4) of the Notification of the Capital Market Supervisory Board 

No. Tor Nor. 11/2564 Re: Rules for Management of Retail Funds, Mutual Funds for Accredited Investors, Mutual Funds for Institutional Investors and Private Funds, dated 29 January 2021

*** SRI Funds are classified into three types, namely Thailand ESG Fund (Thai ESG), Thailand ESG Extra Fund (Thai ESGX), and ESG Funds.