* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Attachment 1 : Liberalization of Securities Business Licensing
Survey
Document related concepts
Peer-to-peer lending wikipedia , lookup
Land banking wikipedia , lookup
Fund governance wikipedia , lookup
Financialization wikipedia , lookup
Short (finance) wikipedia , lookup
Early history of private equity wikipedia , lookup
Credit rating agencies and the subprime crisis wikipedia , lookup
First Report on the Public Credit wikipedia , lookup
Securitization wikipedia , lookup
Investment fund wikipedia , lookup
Financial Crisis Inquiry Commission wikipedia , lookup
Amman Stock Exchange wikipedia , lookup
Investment management wikipedia , lookup
Transcript
Attachment 1 Liberalization of Securities Business Licensing The new scheme The SEC will replace the multiple licensing schemes currently in use with the single license scheme that will allow package services covering a range of securities business capabilities as follows: 1. Full Services: Allowing operation of all types of securities businesses, i.e., securities broker/dealer/underwriter, derivatives broker/dealer, mutual fund management, private fund management, derivatives fund management, venture capital fund management, investment advisor and derivatives advisor, and securities borrowing and lending. 2. Boutique Services: Allowing operation of specific securities businesses categorized as follows: 2.1 Boutique debt services: Allowing operation of debt securities businesses, i.e., debt broker/dealer/underwriter, investment advisor, and securities borrowing and lending. 2.2 Boutique derivatives services: Allowing operation of derivatives business, i.e., derivatives broker/dealer, derivatives fund management, and derivatives advisor. 2.3 Boutique asset management services: Allowing operation of asset management businesses, i.e., mutual fund management, private fund management, derivatives fund management, venture capital fund management, investment advisor and derivatives advisor, and limited BDU. Under the new licensing scheme, securities companies will be given opportunities to make appropriate adjustments to their business structures, both for domestic and outbound businesses, while the SEC will focus its roles on the prevention of conflicts of interest. For example, the securities companies will be able to exercise their own judgments whether to operate every type of securities businesses within one entity or among separate subsidiaries depending on types of products or groups of customers. 2 Upgrading operation of current licensees - Upon meeting the fit and proper requirements, securities companies may offer full services or boutique services on the condition that they apply for necessary licenses. - Reorganization of business structures is permissible such as setting up of subsidiaries or consolidation of certain business units. - Financial institutions with a debt securities dealing license may also apply for a debt securities brokerage license. This is to promote debt securities trading through commercial banks. - Brokerage firms shall have a minimum registered capital of 500 million baht (instead of the current 100 million baht) starting from January 1, 2012. - Private fund management companies and derivatives brokers shall have a minimum registered capital of 100 million baht starting from January 1, 2012. (The current requirements are 20 million baht and 25 baht, respectively). Issuance of new licenses as of January 1, 2012 - Eligible applicants for new licenses are newly incorporated companies in Thailand and commercial banks established under the Commercial Bank Laws (including local branches of foreign commercial banks) except for the boutique debt services license that will be limited to commercial banks, local branches of foreign banks and financial institutions set up under specific laws. - Eligible applicants and its executives shall meet the fit and proper requirements. - For business operation under Category 3 of the Foreign Business Act, securities companies with alien shareholders in excess of 50 percent shall also acquire permission from the Ministry of Commerce. - Providers of full services and boutique services shall have a minimum registered capital of 500 million baht and 100 million baht, respectively. - The license fee for the full services and the boutique services are 20 million baht and 5 million baht, respectively.