Announcement of Signatory of the I Code
Signatories to the I Code
1. Why become a Signatory to the I Code?
The announcement to become a Signatory to the I Code would enhance adherence to implement of the I Code. Implementation of the I Code by Institutional Investors will enhance confidence by domestic and global markets clients and trust that investment decisions and management are done in their best interest. Furthermore, to promote and contribute to a good corporate governance ecosystem that stimulates responsible and sustainable practices by Thai listed companies.
2. What is a Signatory to the I Code?
- A Signatory to the I Code is an Institutional Investor who signed a Letter of Intent to implement the I Code and who is expected to implement the Principles set out in the I Code and disclose its level of I Code compliance for each Principle on a “Comply or Explain" basis.
- For each Principle not applied by the Institutional Investor, whether because of its business profile (including size, structure, or their role in the investment chain) or otherwise, the Institutional Investor must disclose reasons and explain non-compliance or its alternative governance strategy on its website and in its annual report (if any).
3. Who can become a Signatory to the I Code?
The I Code is a voluntary code that applies to Institutional Investors who become signatories as follows:
- Asset Managers: SEC-licensed asset management companies that are responsible for managing funds on behalf of their clients and Asset Owners through an investment mandate and generate returns for them.
- Asset Owners: organisations who pool funds of clients in collective investment vehicles. Asset Owners include Government Pension Funds, Social Securities Funds, insurance companies, Provident Funds, etc.
- Related Service Providers: include fund supervisors, (sub-) custodians, proxy advisers, investment consultants and trustees.
4. Process to become a Signatory to the I Code
- Assess the company's readiness to implement the I Code and compliance with each Principle, before seeking approval from the Board of Directors to have the Chairman sign and submit a Letter of Intent to the SEC expressing the Institutional Investor's intention to become a signatory to the I Code.
- Complete the SIGNATORY DECLARATION TO THE INVESTMENT GOVERNANANCE CODE (I CODE) and have it signed by the Chairman of the company's Board of Directors or Chairman of the Provident Fund
- SIGNATORY DECLARATION TO THE INVESTMENT GOVERNANANCE CODE (I CODE) for Institutional Investor
- SIGNATORY DECLARATION TO THE INVESTMENT GOVERNANANCE CODE (I CODE) for the Provident Fund
- Electronically submit the signed Letter of Intent to the Office of the SEC by email to firstname.lastname@example.org together with an overview of the current total amount of assets under management, and contact details for the person (name, telephone, email) who is designated by the Institutional Investor to provide further information.
The SEC will update and publish the list of signatories to the I Code within one week upon receipt of the Letter of Intent at: www.sec.or.th/cgthailand
5. After becoming a Signatory to the I Code
- Each Institutional Investor who is a Signatory to the I Code is expected to disclose its Letter of Intent in relation to the I Code and regularly report its level of I Code compliance for each of the Principles (“Comply or Explain" basis) on its company's website and in its annual reports (if any).
- Institutional Investors who are regulated by the SEC, such as Asset Managers, are required to notify the SEC electronically by email to email@example.com of their I Code disclosures and any updates thereto with the inclusion of a URL link to their I Code disclosures (or any updates) on their websites. The SEC retains on its website a list of I Code signatories for the benefit of clients in choosing Asset Managers.
- Other Institutional Investors who are not regulated by the SEC, and who follow the I Code, are also encouraged to notify the SEC with the inclusion of a URL link to their I Code disclosures on their websites.