The SEC has reviewed the rules on the aforesaid liquidity risk management tools for mutual funds to enhance management flexibility and provide greater clarity of information disclosure, in line with the current context of mutual fund management, while taking into account the interests of unitholders and the appropriateness of the mutual fund industry’s operations. A public hearing was accordingly conducted during April–June 2026, and most respondents agreed with the proposed principles.

The SEC has therefore prepared the relevant draft notification and is seeking public comments on the draft. The key points are as follows:

1. Amendments to the rules on side pockets (the segregation of assets that are in default, are likely to default, are illiquid, or cannot be disposed of at a reasonable price, whereby the value of such assets is excluded from the calculation of the mutual fund’s net asset value, and the rights of unitholders to receive repayment from such assets at a later stage are prescribed).
              (1) Provide asset management companies (AMCs) with an additional option to repay eligible unitholders in the form of investment units of the original mutual fund, in addition to cash repayment, provided that the conditions and procedures must be clearly specified in the mutual fund scheme, for example, the determination of the rights of repayment recipients and the handling of fractional investment units.
              (2) Prescribe rules on expenses for the management of assets segregated in a side pocket, allowing only expenses that are necessary, appropriate, and directly related to the management of such assets to be charged, and requiring disclosure of details regarding the types, allocation, and methods of charging such expenses in the fund commitment and the prospectus.
              (3) Prescribe rules on asset valuation, the determination of persons entitled to repayment, the management and disposal of assets, and the pro rata repayment of cash or investment units, to ensure that unitholders are treated equally and fairly.
              (4) Require AMCs to notify the SEC and disclose information to unitholders within the prescribed period, as well as provide channels through which the status and progress of the asset management can be continuously monitored.

2. Amendments to the rules on suspension of dealing (a tool for cases where an AMC does not sell or redeem investment units in accordance with orders already received, or ceases to accept subscription or redemption orders, upon the occurrence of necessary circumstances under the prescribed rules).
              (1) Prescribe more clearly the duties of AMCs to notify and disclose information when the suspension of dealing tool is used, by notifying unitholders who have placed subscription or redemption orders and disclosing information to investors in general, as applicable, as well as notifying the SEC together with the reasons and the mutual fund’s action plan.
              (2) Require that, where a mutual fund suspends the dealing of investment units for more than one business day, the AMC notify unitholders and disclose information to investors in general before resuming the acceptance of subscription or redemption orders, as well as report the relevant information and the mutual fund’s investment position to the SEC within the prescribed period.

The consultation paper is available on the SEC website at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1223 and on the Legal Hub at https://law.go.th/. Stakeholders and interested parties are invited to submit comments through either website or by email to tanyanan@sec.or.th and nopharat.p@sec.or.th. The public hearing ends on 16 October 2026.