THAILAND: SEC Proposed Amendments to the Rules on Maintaining Liquidity for Mutual Fund

Monday August 12 2019

The Securities and Exchange Commission of Thailand (SEC) proposed amendments to the rule governing maintenance of liquidity for mutual fund with a focus on fixed income investment with an aim to ensure mismatches between liquidity of underlying assets and fund’s redemption policy are limited and that guidance on liquidity remains relevant, up-to-date, and in line with international standard.

The proposed amendments include:

• Revision of the current list of instruments defined as tier 1 and tier 2 liquid assets and addition of new instruments for local investment.
• Prescription of guideline in assessing liquidity of investment in foreign assets.
• Clarification of the scope of mixed fund that must comply with this rule to include mixed fund with a specified investment proportion in fixed income of not less than % exposure or in which the fund benchmark contains fixed income component of not less than 60%; exclusion from the scope of application for ultra-high net worth accredited investor fund; and extension of the scope of application for cash reserve requirements for mutual fund that offers daily redemption and payment of redemption within the next business day.
• Revision of relevant reporting requirement.

Click on the above link for further information.