In issuing the notifications under subsection (4), the SEC Office shall have the power to set
requirements to be observed by the securities company for each or all of the mutual funds for
whose operations the securities company is responsible.
SECTION 127. The mutual fund supervisor shall have the power and duty to:
(1) ensure that the securities company strictly complies with the provisions of
Section 125;
(2) accept into custody assets of the mutual fund and separate them from other assets as
well as ensure the disposition of the mutual fund in accordance with the mutual fund
project;
(3) prepare deposit and payment accounts of the assets of the mutual fund;
(4) prepare a report to the SEC Office in the event that the securities company has done
any act or omitted to do any act which has caused damage to the mutual fund or has
not acted in accordance with Section 125;
(5) file a legal action in court to cause the securities company to perform its duties or to
claim compensation for damage from the securities company for the benefit of
unitholders as a whole or when instructed by the SEC Office.
Expenses incurred from such legal action on behalf of the unitholders of any mutual fund
shall be paid from the assets of that mutual fund.
SECTION 128. In cases where the securities company does any act or omits to do any act
which causes damage to the mutual fund or fails to perform its duties in accordance with
Section 125, the mutual fund supervisor shall prepare a detailed report concerning such
matter and submit it to the SEC Office within five days from the date on which the mutual
fund supervisor has knowledge of such event.
In cases where the SEC Office receives the report under the first paragraph and considers that
the act of the securities company may have an adverse effect on the interests of unitholders as
a whole, the SEC Office shall have the power to order the securities company to rectify the
said act or to refrain from doing the act which may have such adverse effect or which is a
violation of the duties of the securities company as referred to in Section 125.
In cases where the securities company fails to comply with the order of the SEC Office given
under the second paragraph, the SEC Office shall have the power to:
(1) remove the securities company responsible for the operation of the mutual fund and
replace it with another securities company; in this regard, the replacing securities
company shall be deemed to assume all rights and obligations of the securities
company thus removed;
(2) order the securities company to dissolve the mutual fund.
SECTION 129. In the management of a mutual fund, the securities company shall proceed
in accordance with an approved mutual fund project.
Alteration or modification of the mutual fund project or alteration in the management if not
made through the resolution by the majority of the unitholders who hold more than half of all
that mutual fund's investment units sold shall require an approval from the SEC Office.
In cases where the alteration or the modification is made through a resolution of the
unitholders, the securities company shall submit a report thereof to the SEC Office within
fifteen days from the date of the resolution.
The securities company shall notify all the unitholders of such alteration and modification
and shall publish them in at least one local daily newspaper within fifteen days from the date
on which the approval is given by the SEC Office or the date on which the resolution is
passed, as the case may be.
SECTION 130.4 Upon dissolution of the mutual fund, the securities company shall appoint
a liquidator to collect and distribute assets to the unitholders as well as to do all other acts as
may be necessary for the completion of liquidation in accordance with the rules, conditions
and procedures as specified in the notification of the Capital Market Supervisory Board.
The liquidator under the first paragraph shall be given prior approval from the SEC Office.
Expenses and remuneration arising from liquidation of any mutual fund shall be paid from
the assets of that mutual fund.
SECTION 131. After the completion of the liquidation, the liquidator shall apply for
registration of the dissolution of the fund with the SEC Office.
The liquidator shall transfer ownership of any assets remaining after registration of the
dissolution of the mutual fund to the SEC Office.
SECTION 132. The provisions of Section 47, Section 48, Section 80, Section 81,
Section 82, Section 83, Section 84, Section 85, Section 86, Section 87 and Section 89
including the related penalty provisions shall apply mutatis mutandis to the offer for sale of
investment units to the public and to legal action taken against the mutual fund supervisor.
Expenses incurred from such legal action on behalf of the unitholders of any mutual fund
shall be paid from the assets of that mutual fund.
DIVISION 82
PRIVATE FUND MANAGEMENT
SECTION 133.4 The securities company shall manage a private fund with honesty and
care to preserve the interests of the person who has authorized the management of the
private fund, using knowledge and competence as a professional.
The securities company shall enter into a written agreement with a person or a group of
persons who has authorized the securities company to manage the private fund, and shall
manage the private fund in accordance 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 shall have the power to specify the particulars which are
material to the agreement.
SECTION 134.4 In managing a private fund, the securities company shall provide a
private fund manager with the approval of the SEC Office in accordance with the rules,
conditions and procedures as specified in the notification of the Capital Market Supervisory
Board.
The provisions of the first paragraph of Section 133 shall apply mutatis mutandis to the
performance of the private fund manager.
The private fund manager shall manage the private fund in accordance with the rules,
conditions and procedures as specified in the notification of the Capital Market Supervisory
Board.
The SEC Office shall have the power to revoke the approval for a private fund manager
who fails to comply with the provisions of the second paragraph or the third paragraph.
SECTION 135.4 In the management of a private fund, the securities company shall
arrange for the appointment of a custodian with an approval of the SEC Office in
accordance with the rules, conditions and procedures 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 |
