On March 3, 2021, two new types of license became available to operators of securities businesses in Thailand, following the enactment of an amendment to the ministerial regulation regarding securities business licensing in Thailand, which was announced by the Ministry of Finance four months prior.
While existing license types are broader, and subject to high-level conditions and compliance levels, the two new licenses are more specific and may be more suitable and cost-effective for operators whose activities are limited to a narrower scope of securities business.
The details of the two new license types—the Type E Securities Business License and the Private Fund Management License—are as follows:
Type E Securities Business License
A Type E Securities Business License covers the following business activities:
- Equity brokerage
- Equity dealing
- Equity underwriting
- Investment advisory service
- Securities borrowing and lending
Operators eligible to apply for a Type E License include:
- securities companies;
- commercial banks;
- life insurance companies;
- special-purpose financial institutions; and,
- Thai incorporated companies.
Private Fund Management License
Previously, business operators who only intended to conduct private fund management business had to apply for a Type C license—a broad category of license covering mutual fund management, private fund management, brokerage for investment units or trust certificates, and so on. The new Private Fund Management License provides a more targeted alternative to the Type C license, which is subject to higher license fees and more comprehensive compliance requirements.
New applicants for a securities business license may now specify one of the additional license types when applying to the Ministry of Finance through the SEC. Holders of existing securities business licenses can also apply to change to one of the new license types.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.