The Securities and Exchange Commission (SEC) of Thailand has recognized the need for a comprehensive update to its regulatory framework to better address the dynamic socio-economic landscape, rapid technological advancements, and the innovative yet unpredictable nature of the private sector. The existing laws have been criticized for their lack of clarity, misalignment with international standards, and inadequate mechanisms for enforcing criminal liability in the realms of securities, derivatives, and digital assets.
Introducing the Draft Regulations
To address these challenges, the SEC has proposed drafts for four significant new regulations aimed at modernizing the capital market framework:
1. Draft Securities and Exchange Act
2. Draft Derivatives Act
3. Draft Trust for Transactions in Capital Market Act
4. Draft Act to Amend the Royal Decree on Digital Asset Business
These proposed amendments aim to enhance clarity, remove obstacles, and establish a legal framework aligned with international standards. The revisions are expected to have a profound impact on stakeholders, including securities business operators, derivatives market participants, trust operators, digital asset businesses, investors, and the general public.
Figure 1. Proposed Draft of the Securities and Exchange Act.
Figure 2. Proposed Draft of the Derivatives Act.
Figure 3. Trust for Transactions in Capital Market Act and Draft Amendment to the Royal Decree on Digital Asset Business.
How Can Businesses Prepare for the Transition?
To ensure a seamless adaptation to these regulatory changes, business operators should proactively engage with the SEC’s initiatives. The following steps are recommended:
1. Understand the Regulations
Stay informed about the proposed changes by studying the draft acts and seeking professional advice or consultation where necessary.
2. Evaluate Current Practices
Assess the impact of the new regulations on existing operations, policies, and systems. Identify areas for improvement to align with future compliance requirements.
3. Train Employees
Invest in external training programs or conduct internal sessions to ensure employees understand and can implement the new regulatory standards.
4. Engage with Authorities
Maintain open communication with regulatory bodies to seek clarification, provide feedback, and build collaborative relationships that facilitate compliance.
5. Monitor Implementation Timelines
Keep track of regulatory timelines, including the effective dates of new provisions, to plan and implement changes in a timely manner.
6. Prepare for Enforcement
Develop a robust compliance response plan, and ensure accurate record-keeping and documentation to demonstrate adherence to the new laws.
A Step Forward for Thailand’s Capital Market
The SEC’s proposed revisions mark a significant step toward modernizing Thailand’s capital market framework. By addressing longstanding gaps and aligning with global standards, these laws aim to foster a more transparent, efficient, and robust financial ecosystem. Businesses that proactively prepare for these changes will not only ensure compliance but also position themselves for sustainable growth in a rapidly evolving market.
For more information or to submit feedback on the draft laws, stakeholders are encouraged to visit the SEC’s official website.