Bangkok, 18 May 2022 – The Securities and Exchange Commission (SEC) is seeking public comments on a proposed amendment to the regulations related to the appointment of directors and executives of securities companies and derivatives business operators (intermediaries) to support efficient management of operations and risks in line with the changing landscape, business trends, and the Corporate Governance Code (CG Code) while protecting the interest of the investors.
In face of the changing environment, such as technological development, volatility of the global financial and capital markets, impacts of the COVID-19 pandemic, and investors’ changing behaviors, intermediaries have adapted in response to such changes. For example, restructuring affiliated companies and optimizing the use of human resources to serve business expansion, including diversification of products and services.
The SEC is therefore proposing to amend the regulations on the appointment of directors and executives of intermediaries. On 19 April 2022, the Capital Market Supervisory Board Meeting No. 3/2565 passed a resolution approving the proposed amendment whereby directors and executives will be allowed to hold the position at a limited number of companies. For example, Chief Executive Officer (CEO) may hold the position at only one company while director may hold the position at up to five companies, etc. This is to allow executives of intermediaries to allocate sufficient time to efficiently manage work and risks of the intermediaries in compliance with the CG Code of listed companies, and to protect the interest of the investors.
The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=804. Stakeholders and interested parties are welcome to give comments and suggestions via the website or email: supitcha@sec.or.th, titibhorn@sec.or.th or pongpim@sec.or.th. The public hearing ends on 2 June 2022.