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This translation has been provided with the kind assistance of Chaninat & Leeds. Chaninat & Leeds practices both family and business law, including K1 visa Thailand.




 

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

 

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