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SEC proposes principles for enhancing efficiency of supervision on auditors and audit firms in the capital market



Friday 21 August 2020 | No. 155 / 2020


Bangkok, 20 August 2020 – SEC is seeking public comments on the proposed principles for amending the Securities and Exchange Act B.E. 2535 (1992) regarding the supervision on auditors and audit firms in the capital market to enhance enforcement efficiency and investor protection in line with international standards.

SEC is proposing amendment to the guidelines for supervising auditors and audit firms in the Thai capital market to enhance the audit quality oversight of audit firms and promote the development of audit quality of auditors. In preparing for the amendment proposal, SEC has assigned Thailand Development Research Institute (TDRI) to study and analyze laws and mechanisms related to supervision on auditors and audit firms in the Thai capital market in comparison to foreign counterparts and to subsequently propose recommendations for the amendment to the guidelines for the oversight of auditors and audit firms in the Thai capital market. TDRI has completed the study project and proposed recommendations in this regard.

SEC has taken TDRI’s recommendations into consideration in proposing principles for amending the Securities and Exchange Act B.E. 2535 (1992) in three major areas, namely: (1) the granting of approval to audit firms and auditors in the capital market, (2) the collection of fees from audit firms and auditors in the capital market, and (3) the determination of penalties on audit firms and auditors in the capital market. The objectives of the amendment are to promote the improvement of audit quality, enhance the credibility of the financial reporting system in the Thai capital market, and strengthen the mechanism for investor protection. In addition, the proposed supervisory guidelines would not impose excessive burdens on audit firms and auditors and would specify penalty alternatives that focus on appropriate proportionality of punishment to offense.  

The consultation paper on the proposed principles for amendment to the Securities and Exchange Act B.E. 2535 (1992) regarding supervision on auditors and audit firms in the capital market is available at https://www.sec.or.th/EN/Pages/PB_LISTVIEW.aspx. Stakeholders and interested parties are welcome to give comments and suggestions via the website or email: krissana@sec.or.th and jirapa@sec.or.th. The public hearing ends on 21 September 2020.  

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