The SEC is seeking public comments on proposed amendments for asset management company regulations to improve flexibility in compensation for incorrect pricing, ensuring investor protection while maintaining benefits.
The Securities and Exchange Commission (SEC) is inviting public feedback on proposed principles and draft amendments to regulations governing operational guidelines for asset management companies (AMCs). These amendments introduce additional compensation options for situations involving errors in calculating investment unit value or pricing. The initiative aims to enhance flexibility in mutual fund management while safeguarding investors’ rights and ensuring they receive appropriate protection and benefits.
Currently, the existing regulations regarding compensation for incorrect calculation of investment unit values require AMCs to compensate by reducing the number of units held by the buyers or the sellers who have benefited more than they should have (in an amount equal to the difference between the incorrect and correct unit prices). However, these regulations do not cover the method whereby AMCs use their own funds to pay a compensation to the affected mutual funds instead of reducing the number of units. In other cases, the regulations do allow AMCs to compensate using such method.
The SEC has therefore reviewed the regulations regarding the operational guidelines for AMCs in case of incorrect pricing. This is to provide AMCs with greater flexibility in fund management, while ensuring that investors continue to receive appropriate protection and do not lose any rightful benefits. The SEC is inviting public comments on the proposed principles and draft regulations, with the key points as follows:
(1) To provide an additional option for AMCs to pay compensation from their own funds to the affected mutual fund as an alternative to reducing the number of investment units held by the buyers or the sellers who have benefited more than they should have (in cases where they still have a sufficient number of units at the time of compensation);
(2) To increase flexibility for AMCs to pay monetary compensation for losses resulting from incorrect pricing to the mutual fund or affected parties in an amount greater than the actual loss incurred. For example, compensating in consideration of opportunity cost.
The public consultation is available at the SEC website at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=1102. Stakeholders and interested parties are invited to submit their comments and suggestions via the website or email: suppawit@sec.or.th or jirapathara@sec.or.th. The public hearing ends on 21 September 2025.
