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 .
_____________________