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SEC to impose ESG training requirement on capital market business personnel to promote sustainable investment



Monday 22 March 2021 | No. 59 / 2021


Bangkok, 22 March 2021 – The Securities and Exchange Commission (SEC) has revised regulations on capital market business personnel by requiring investment consultants, investment planners, investment analysts, agricultural commodity trading management officials, fund managers and derivatives investment managers to attend Environmental, Social and Governance (ESG) compulsory training course before applying for renewal of approval. The new requirement, to become effective in 2022, aims to promote knowledgeability and readiness of capital market business personnel in providing ESG-related services to investors.

The SEC supports and promotes sustainable investment on a continued basis, emphasizing the importance of business operation and investment in the Thai capital market that takes into account every aspect of ESG principles, from the areas of capital market products and issuers to intermediaries and investors. The SEC also encourages business sectors in the capital market to disclose ESG information to investors for the benefit of investment-decision making through the annual registration statement (Form 56-1 One Report), which will become effective in 2022. 

SEC Secretary-General Ruenvadee Suwanmongkol said: “Personnel in capital market business play a very important role in raising both institutional and retail investors’ awareness and knowledgeability on ESG-focused business practice and investment. The SEC thus encourages capital market business personnel, especially investment consultants, investment analysts and personnel who provide services of making decisions on investment for investors , to attend an ESG training course in addition to the existing compulsory training courses on rules and regulations, ethics or relevant laws, to ensure sufficient knowledge and regular review thereof in line with the ever changing market environment.”   

Starting from 2022, attending and passing the ESG compulsory training course every two years will be a requirement for renewal of approval for capital market business personnel in the categories of investment consultant, investment planner, investment analyst, agricultural commodity trading management official, fund manager and derivatives investment manager. This gives involved parties, including numerous capital market business personnel, sufficient time to make necessary preparations within this year.  

“SEC is confident that personnel in capital market business including intermediaries* are a key mechanism for addressing issues regarding development of a sustainable capital market for the benefit of investors, issuers and the capital market at large,” added SEC Secretary-General. 

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Remark: * Intermediaries are securities business operators and derivatives business operators which provide services such as securities brokerage, securities dealing, investment advisory, securities underwriting, mutual fund management, private fund management and derivatives agents, etc. 







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