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SEC introduces the first Capital Market Digital Strategic Plan 2020 – 2022 to promote development of market innovations

Thursday 16 July 2020 | No. 134 / 2020

Bangkok, 16 July 2020 – SEC has introduced the first Capital Market Digital Strategic Plan 2020 - 2022 to support and promote the development of innovations and utilization of digital technology resulting in a digital market accessible for the public and all stakeholders, in alignment with the 20-Year National Strategy and the drive towards innovative digital economy for sustainable growth.

The Sub-committee on Digital Strategy for Capital Market, chaired by Mrs. Methini Thepmanee, has approved the SEC Capital Market Digital Strategic Plan 2020 – 2022, which aims to support technological advancements and accommodate the adoption of disruptive technology in financial services and capital market. The plan focuses on policies and approaches for optimizing useful technologies and innovations in the Thai capital market in the move towards digital transformation in line with the 20-Year National Strategy (2018 - 2037), the 12th National Economic and Social Development Plan (2017-2021), the 3rd Thai Capital Market Development Plan (2017-2021) and the SEC Strategic Plan (2020-2022), including technological trends that will become key factors toward disruption of financial services and the capital market, as follows:
 (1)  Open Data: To support collection and disclosure of capital market information in the form of open data, for example, information on investment, business operators, mutual funds and financial instruments. SEC has publicized open APIs disclosing mutual fund information and adopted the machine-readable reporting method for the benefit of business operators in developing new services or investment tools;
 (2)  Artificial Intelligence (AI) & Machine Learning (ML): To promote the use of AI/ML for developing market innovations, for example, AI/ML-based investment and risk analysis to provide appropriate services that are accessible and suitable for investors’ needs. SEC has also launched the Wealth Tech Project using robo advisor and/or AI for investment analysis and investment planning for retirement; 
 (3)  Crowd Empowerment: To encourage the use of crowdsourcing whereby opinions of experienced persons may be accumulated for the crowd to make decisions more efficiently. In addition, crowdfunding will be promoted for SMEs and startups as an alternative channel to raise fund for business development more conveniently. So far, regulations regarding debt crowdfunding have been amended to be more in line with the needs and risk characteristics; 
 (4)  Distributed Ledger Technology (DLT): To develop a digital infrastructure based on DLT concept for securities offering, clearing and settlement, in accordance with the development on regulations that enable digital fundraising to increase efficiency, streamline processes, reduce costs and promote transparency in the fundraising process; 
 (5)  Cyber Resilience: To elevate the standard of cybersecurity of business operators towards cyber resilience;
 (6)  Data Protection: To support stakeholders in the capital market in making necessary preparations for compliance with the Personal Data Protection Act to ensure that the gathering, storing and using of personal data will be efficient and comply with standards;  
 (7)  RegTech & SupTech: To deploy regulatory technology and supervisory technology (RegTech & SupTech) for supervision and data linkage. For example, to enable the use Electronic Know-Your-Client (E-KYC) through the National Digital ID Project, in addition to an adoption of technology-based inspection to increase efficiency of market supervision through the E-enforcement Project, which uses technology to detect and analyze irregularities related to suspicious transactions.

SEC Secretary-General Ruenvadee Suwanmongkol said: “This is the first time that SEC has laid out a capital market digital strategic plan. We take into serious account technological developments and promote competitiveness of the Thai capital market in consistent with the emerging digital disruption. This plan has received support and approval from the Sub-committee which is chaired by Mrs. Methini Thepmanee and composed of experts and representatives from public and private sectors.”