Bangkok, February 10, 2014 ? Securities and Exchange Commission (SEC) discussed with the Thai Bankers? Association (TBA) and the Association of International Banks (AIB), on the commercial banks? roles to support their subsidiaries? overseas business expansion and the services of personal asset allocation as well as wealth advisory. SEC Secretary-General Vorapol Socatiyanurak said after the first 2014 semi-annual meeting with top executives of Thai and foreign commercial banks that the commercial banks have played a remarkable role in Thai capital market development as they provide access to investment through a number of branches nationwide. Moreover, the commercial banks can also take another important role to support securities companies and asset management companies in their groups to seek business expansion opportunities overseas which the SEC is willing to help facilitate and abolish regulatory impediments. Realizing a crucial role of commercial banks in distributing capital market products, the SEC and the Associations discussed an importance of financial planning. The banks? investment consultants should be equipped with capability to provide preliminary advice for investors to raise their awareness on asset allocations. In addition, they should be able to give advice on suitable financial products for investors with a view to achieving sufficient savings upon retirement. Since all investment consultants must be prompt to provide the said services by the next 2 years, there is time for all commercial banks to develop the staff competency. Meanwhile, the SEC asked the commercial banks to take precaution to ensure that only the SEC approved investment consultants are allowed to give advice to the investors. Their compliance with the relevant rules must also be completely fulfilled; for example, they must ask the clients to do suitability test before giving advice. In this regard, the SEC updated the progress of upcoming regulations on Basel III additional tier 1 and tier 2 instruments, permissible to be offered to institutional investors and high net worth investors, either directly or through intermediaries. Due to the instruments? characteristics of high risk and complexity, the investment consultants will be required to disclose and explain to prospective investors all important information before making investment decision such as terms and conditions, associated risks, effect on investors under the specified scenarios. The regulations are expected to become effective early this year. ?The commercial banks? nationwide branches and the bank-client familiarity contribute to their crucial role on investor?s investment decision. Accordingly, the SEC supports the commercial banks to emphasis on their service quality and staff training on financial planning to become a key service provider for asset allocation advice. From the meeting, the SEC received useful comments and suggestions on regulatory issues, such as securities offering and selling agents, and the issues of financial literacy. Meanwhile, the banks? executives obtained more information on the SEC?s policy and direction to develop Thai capital market which would be beneficial for the consideration on business planning, said Vorapol.