SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board (CMSB) recently approved revision of regulations to expand list of investment products denominated foreign currencies permissible for accredited investors (AI) in preparation for the Capital Account Liberalization Plan of the Bank of Thailand (BOT) to allow retail investors to make overseas investment directly. Additional permissible products are more complicated, risky and similar to those AIs have been allowed to invest domestically such as unrated bond and foreign sukuk. Moreover, all investors will have more investment choices in fund of funds with policy to invest in permissible products and a variety kinds of investment products denominated foreign currencies.
Meanwhile, to enhance the business operator’s competitiveness, the CMSB approved underwriters to provide service in foreign currency denominated securities, the service of which has previously been provided by brokers and dealers.
“With a view to enabling investor competence of investment in a variety of products and enhancing intermediaries’ competitiveness in preparation for the BOT’s Capital Account Liberalization Plan, the SEC has promoted dissemination of knowledge in investment products among investors while urged intermediaries to be well-prepared. AIs will have more investment choices in more complicated and risky investment products denominated foreign currencies and gradually, retail investors will be permitted to invest in such products as well. This is to ensure that easing of investment regulations will truly be advantageous for investors, intermediaries and Thai capital market,” Vorapol said.