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SEC revises regulations for securities companies giving services to foreign investors investing in Thai bonds and registering for authentication with BOT under the Bond Investor Registration program



Monday 12 April 2021 | No. 75 / 2021


Bangkok, Monday 12 April 2021 – The Securities and Exchange Commission (SEC) is revising its regulations for securities companies providing bond securities business services and custodian services in order to support services given to foreign investors who invest in Thai bonds and register for authentication with the Bank of Thailand (BOT) according to the first phase of the BOT’s Bond Investor Registration (BIR) program. This regulatory revision is in line with the cooperative plan between the SEC and the BOT.

The Capital Market Supervisory Board (CMSB)’s Meeting No. 4/2021 dated 16 March 2021 passed a resolution approving in principle the regulatory revision following the cooperative plan of the BOT’s BIR program. The revision would accommodate the BOT’s market surveillance to acquire in-depth, complete, accurate and timely information on foreign bond investors’ behaviors. Such information would be useful for policy making with regard to exchange rates and financial system in an effective and timely manner.

The SEC therefore proposes to revise relevant regulations to require securities business operators providing bond securities business services to examine and ensure that the ultimate beneficiary owners (UBO) register for their authentication with the BOT before providing the services.

This is an additional requirement, aside from the Know Your Client (KYC) process, to be imposed on non-residents so that the UBOs will be acknowledged. In the meantime, local custodians of bonds would be required to ensure that there is a separate securities account for each UBO and register for authentication with the BOT or proceed with any other actions for the BOT’s acknowledgement of the UBOs’ investment information in the bond market.

After completing the drafted regulations following the CMSB’s resolution, the SEC will conduct a public hearing with related parties and the general public. The drafted regulations are expected to come into force on 4 January 2022 concurrently with the BOT’s regulations so that bond receipt and delivery to foreign investors will be done only through securities accounts registered with the BOT .

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NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 75 / 2021 Monday 12 April 2021
SEC revises regulations for securities companies giving services to foreign investors investing in Thai bonds and registering for authentication with BOT under the Bond Investor Registration program
Bangkok, Monday 12 April 2021 – The Securities and Exchange Commission (SEC) is revising its regulations for securities companies providing bond securities business services and custodian services in order to support services given to foreign investors who invest in Thai bonds and register for authentication with the Bank of Thailand (BOT) according to the first phase of the BOT’s Bond Investor Registration (BIR) program. This regulatory revision is in line with the cooperative plan between the SEC and the BOT.

The Capital Market Supervisory Board (CMSB)’s Meeting No. 4/2021 dated 16 March 2021 passed a resolution approving in principle the regulatory revision following the cooperative plan of the BOT’s BIR program. The revision would accommodate the BOT’s market surveillance to acquire in-depth, complete, accurate and timely information on foreign bond investors’ behaviors. Such information would be useful for policy making with regard to exchange rates and financial system in an effective and timely manner.

The SEC therefore proposes to revise relevant regulations to require securities business operators providing bond securities business services to examine and ensure that the ultimate beneficiary owners (UBO) register for their authentication with the BOT before providing the services.

This is an additional requirement, aside from the Know Your Client (KYC) process, to be imposed on non-residents so that the UBOs will be acknowledged. In the meantime, local custodians of bonds would be required to ensure that there is a separate securities account for each UBO and register for authentication with the BOT or proceed with any other actions for the BOT’s acknowledgement of the UBOs’ investment information in the bond market.

After completing the drafted regulations following the CMSB’s resolution, the SEC will conduct a public hearing with related parties and the general public. The drafted regulations are expected to come into force on 4 January 2022 concurrently with the BOT’s regulations so that bond receipt and delivery to foreign investors will be done only through securities accounts registered with the BOT .

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