Bangkok, April 8, 2014 ? The SEC requires all licensees of securities and derivatives businesses appoint independent directors at least one-fourth of the board members by January 1, 2016.

SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board recently approved revision of regulations on independent directors of licensed securities and derivatives business operators. The revised regulations require the said licensees appoint independent directors to perform their duties with honesty and trustworthiness for customer interest and thus aim to ensure efficient check and balance mechanism of the business operators. Accordingly, the business operators including those doing business in form of financial conglomerate are required the independent directors at least one-fourth of board members by January 1, 2016. From January 1, 2016, new licensees must appoint independent directors in compliance with the specified proportion  prior to commencing business operations.

The requirement to appoint independent directors, however, will not apply to certain cases; for example, securities and derivatives investment advisors due to their relatively small size and few staffs as well as licensees which cease business operations.

For financial institutions supervised by other lead regulators and licensed to operate securities or derivatives businesses, such as commercial banks, life insurance companies, if complied with the requirement on independent directors as prescribed by such other lead regulators, they will be deemed to have been appointed independent directors under  the regulations of the Capital Market Supervisory Board.

?Independent directors play a vital role in ensuring corporate governance of business operators and utmost interest of customers. The SEC therefore proposed this revision by considering the aspects of appropriateness and practicality to promote better business standard and flexibility,? said Vorapol.