SECTION 104. A securities company shall appoint directors or managers or enter into an
agreement with other persons, giving the power, either in whole or in part, to manage the
business of the securities company only with the approval from the SEC Office.
In cases where it later appears that the persons under the first paragraph have the prohibited
characteristics as specified in Section 103, the SEC Office shall have the power to withdraw
its approval and the securities company shall propose other persons for the approval from the
SEC Office within fifteen days from the date of the withdrawal.
The provisions of Section 103 shall apply mutatis mutandis to the persons with whom the
securities company enters into an agreement allowing such persons as well as those who
work for such persons to have full or partial managing power in the securities company.
SECTION 105. A securities company shall prepare its accounts stating true and accurate
business operation and financial condition, which must conform to the accounting standards
as specified by a professional institution approved by relevant government authorities and in
accordance with additional regulations specified in the notification of the SEC.
SECTION 106. A securities company shall prepare a balance sheet and a profit and loss
account for each accounting period of six months in the form specified in the notification of
the SEC Office. The balance sheet shall be examined and an opinion given thereon by an
auditor approved by the SEC Office to be the auditor for such financial year. Such auditor
shall not be a director, officer or employee of the securities company.
The securities company shall publish its balance sheet and profit and loss account prepared in
accordance with the first paragraph for each accounting period of six months. Such
publications shall be posted in a prominent place at the office of such securities company,
published in at least one local daily newspaper, and one copy shall be submitted to the
SEC Office.
Preparation of the balance sheet and the profit and loss account for the first six months of the
financial year in accordance with the first paragraph and the publication in accordance with
the second paragraph shall be completed within three months from the end of each
accounting period. For each financial year, such preparation shall be completed within
twenty-one days from the date of approval by the general meeting of the shareholders but not
later than four months from the end of such financial year, unless otherwise specified by the
SEC Office.
SECTION 107. The auditor as referred to in Section 106 shall adhere to the ethical code
of auditors, perform the audit work and declare his opinion according to the provisions of the
law relating to auditors and additional provisions as specified in the notification of the SEC.
Where the auditor finds that the securities company has made false supporting documents
and/or made incorrect recordings in the accounts, the auditor shall disclose the facts material
to the accounts which affect the financial statement in the auditing report in which the auditor
has to sign his name for the purpose of declaring his opinion.
The SEC Office shall have the power to withdraw its approval of the auditor who fails to
comply with the provisions of the first or second paragraph.
SECTION 108. A securities company shall publish particulars or disclose any other
information concerning the securities company in accordance with the rules and the time
specified by the SEC Office. Such publications or disclosure shall be displayed in a
prominent place at the office of such securities company. A report together with a copy of
such publications or disclosure of such information shall be submitted to the SEC Office.
SECTION 109.4 The SEC Office may require any securities company to submit any report
or present any document for any period or from time to time as specified by the SEC Office
and may also require an explanation to elaborate or clarify such reports or documents in
accordance with the rules and required period as specified in the notification of the
Capital Market Supervisory Board.
The reports and documents submitted or presented or the explanations to elaborate or clarify
in accordance with the first paragraph shall be complete and accurate.
SECTION 110. A securities company shall open its office for business during business
hours and close its office on the days specified by the SEC Office, unless permission
has been granted by the SEC Office to open or close its office at any other hours or days.
SECTION 111. The provisions of Section 94, Section 98(1), (7), (8) and (9), Section 104,
Section 106, Section 107, Section 108 and Section 110 shall not apply to financial institutions
established under other laws and granted licenses in accordance with Section 90.
SECTION 111/1.4 When a securities company becomes a debtor by judgment, a debtor
under receivership or is ordered by the government or any regulatory body under any other
laws to suspend its business either in whole or in part, the provisions of Section 43,
Section 44, Section 45 and Section 46 of the Derivatives Act B.E. 2546 shall apply
mutatis mutandis to the customer and the asset deemed as owned by customer, as the case
may be. In this regard, the item and amount of assets as indicated in the account prepared by
the securities company, in accordance with the rules specified in the notification of the
Capital Market Supervisory Board, are presumed to be correct, unless proven otherwise.
For the purpose of this Section, “customer” means:
(1) any person who uses the securities business service provided by a securities company
in the category of brokerage or any other particular categories of securities business
as specified in the notification of the Capital Market Supervisory Board and holds a
net claim against such securities company with a right to claim money, securities,
financial instrument or any other assets which the securities company received,
acquired or held for the account of such person;
(2) any person other than person in (1) who holds a net claim against such securities
company arising from securities trading in the Securities Exchange or over-thecounter
center, which the securities company has entered into for the benefit of the
person in (1).“asset deemed as owned by customer” means:
(1) all customer assets and any other assets acquired in substitution for the customer
assets, including any interest arising therefrom which are in the possession of or
under the power to order or dispose by the securities company arising from the
securities business in the category of securities brokerage or any other particular
categories of securities business as specified in the notification of the Capital Market
Supervisory Board;
(2) securities or any other financial instruments held by a securities company in its own
account, which are of the same class and type of securities or financial instrument
issued by an issuer or mutual fund project as those owned by the customer, provided
that, the amount of which shall be limited to that required for return the same class
and type of securities or financial instrument to satisfy the claim of the customer
against the securities company.
DIVISION 3
SECURITIES BROKERAGE
SECTION 112.4 In operating the business of securities brokerage, a securities company
shall enter into a written agreement with the customers who appoint it to act as securities
broker. For the purpose of fairness to the parties, the Capital Market Supervisory Board may
specify any particulars which are material to the agreement.
SECTION 113.4 In operating the business of securities brokerage, a securities company
shall comply with the rules, conditions and procedures as specified in the notification of the
Capital Market Supervisory Board.
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4. indicated amendment by the Securities and Exchange Act (No. 4) B.E. 2551 |
