DIVISION 4
SECURITIES DEALING SECTION 114.4 In operating the business of securities dealing, a securities company shall
comply with the rules, conditions and procedures as specified in the notification of the
Capital Market Supervisory Board.
DIVISION 5
INVESTMENT ADVISORY SERVICE
SECTION 115.4 In operating the business of investment advisory service, a securities
company shall comply with the rules, conditions and procedures as specified in the
notification of the Capital Market Supervisory Board. In this regard, the Capital Market
Supervisory Board may also specify fees or service charges which the securities company
may charge its customers for performing investment advisory service.
DIVISION 6
SECURITIES UNDERWRITING
SECTION 116.4 In operating the business of securities underwriting, a securities company
shall comply with the rules, conditions and procedures as specified in the notification of the
Capital Market Supervisory Board. In this regard, the Capital Market Supervisory Board
may also specify fees or service charges which the securities company may charge its
customers for the performing underwriting service.
DIVISION 7
MUTUAL FUND MANAGEMENT
SECTION 117.4 In the management of a mutual fund, a securities company may set up
and manage a mutual fund only when its application to set up the mutual fund has been given
an approval by the SEC Office in accordance with the rules, conditions and procedures as
specified in the notification of the Capital Market Supervisory Board.
SECTION 118. In applying to set up a mutual fund in accordance with Section 117,
a securities company shall also submit the following documents:
(1) details of the mutual fund project as specified in the notification of the SEC Office;
(2) draft commitment between the unitholders and the securities company;
(3) draft agreement appointing the mutual fund supervisor.
SECTION 119.4 The commitment between the unitholders and the securities companyshall contain at least the following material provisions:
(1) powers, duties and responsibilities of the securities company;
(2) appointment, conditions for replacement, and remuneration of the mutual fund
supervisor;
(3) rates and payment procedure of fees and remuneration for the mutual fund
management;
(4) rights of the unitholders;
(5) dissolution of the mutual fund either by expiration of the mutual fund project or due
to any other reason;
(6) other particulars as specified in the notification of the Capital Market Supervisory
Board.
SECTION 120. The commitment referred to in Section 119 and the agreement appointing
a mutual fund supervisor shall not contain any unfair limitation of liabilities of the securities
company and of the mutual fund supervisor towards the unitholders.
Any provisions in the commitment or in the agreement which are contrary to the provisions
of the first paragraph shall be void.
SECTION 121. A mutual fund supervisor shall be a commercial bank or a financial
institution which has qualifications as specified in the notification of the SEC Office.
In issuing the notification in accordance with the first paragraph, the SEC Office shall specify
the following important matters:
(1) capital fund, net total assets and business operation of the person who will become
the mutual fund supervisor;
(2) relationship between the mutual fund supervisor and the securities company;
(3) arrangement of organizational structure and internal controls necessary for fulfilling
the duties of the mutual fund supervisor.
SECTION 122. When an approval has been given to a securities company to set up and
manage a mutual fund in accordance with Section 117 and prior to offer for sale of
investment units to the public, the securities company shall arrange for the appointment of a
mutual fund supervisor.
SECTION 123. The offer for sale of investment units to the public shall be made only
after a securities company has delivered or distributed a prospectus containing the date of
approval for the setting up and the management of the mutual fund.
The prospectus shall be in the form as specified in the notification of the SEC Office and
wherever there are corresponding particulars in the prospectus and the details of the mutual
fund project, the material facts stated therein shall be the same.
SECTION 124.4 Money received from the sale of investment units of each mutual fund
project shall constitute a pool of assets which the securities company shall be required to
register with the SEC Office as a mutual fund in accordance with the rules and procedures as
specified in the notification of the Capital Market Supervisory Board.
The registered mutual fund shall be a juristic person with the objective of enabling the
securities company to make an investment in accordance with the approved mutual fund
project in which case the securities company shall be responsible for the operation of the
mutual fund.
The mutual fund under the second paragraph shall have the same nationality as the securities
company responsible for the operation of the mutual fund.
SECTION 125.4 In the management of a mutual fund, the securities company shall
proceed as follows:
(1) manage the mutual fund strictly in accordance with the approved mutual fund project
and the commitment made with the unitholders;
(2) deposit the assets of the mutual fund into the custody of the mutual fund
supervisor;
(3) prepare correct and complete accounts of investments of the mutual fund;
(4) prepare investment reports of the mutual fund for the mutual fund supervisor in
accordance with the rules and procedures specified in the notification of the
SEC Office;
(5) prepare and maintain a unitholders register in accordance with the rules and
procedures specified in the notification of the SEC Office with the approval from the
Capital Market Supervisory Board;
(6) arrange for the collection of returns on investments of the assets of the mutual fund
and deposit them into the custody of the mutual fund supervisor.
SECTION 126. In the management of a mutual fund, the securities company shall be
prohibited from:
(1) engaging in any act which may create a conflict of interest with the unitholders as
specified in the notification of the SEC Office;
(2) investing in or holding shares of the securities company responsible for the
management of that mutual fund;
(3) investing in or holding investment units of other mutual funds managed by the same
securities company;
(4) investing in or holding securities of any company exceeding the ratio specified in the
notification of the SEC Office; in this regard, the SEC Office may set a requirement
in accordance with the type of securities or the type of business of such company;
(5)3 borrowing in the name of the mutual fund or creating any encumbrances on the assets
of the mutual fund, except entering into derivative or engaging in the transaction in
accordance with the rules, conditions and procedures as specified in the
notification of the SEC.
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4. indicated amendment by the Securities and Exchange Act (No. 4) B.E. 2551 |
