The Securities and Exchange Commission Thailand said this is likely by early August and it sees introduction of more distribution channels promoting the development of the local asset management industry.
Stipulating the eligibility norms, the Thai regulator said the entity has be a non-bank company with more than 50% of the voting rights shares being held by the Ministry of Finance.
Furthermore, these companies should have the permission from the Bank of Thailand to provide financial services, such as money deposit and withdrawal, money transfer or bill payment.
Among other conditions, these companies need to have a nationwide network or branches to reach out to investors with a clear long-term business plan in place for providing selling agent service for investment in mutual funds.
Vorapol Socatiyanurak, secretary-general, said: “The new type of selling agents will not only promote development of asset management industry and enhance competitiveness of asset management companies non-bank subsidiaries, but also open access for potential operators, such as Thailand Post, to take part in capital market businesses.”
Thailand Post is a state enterprise company that provides postal and financial services services in the county. In May, the regulator had supported Thailand Post, counters at 7-11 and other leading retail shops, and Tesco Lotus to be paying agents for investment in mutual funds.
According to Vorapol, more investment channels will also support the government’s policy to promote saving and investment discipline and retirement planning.
Recently, the Thailand regulator directed asset management companies to develop ‘post retirement products’ as an investment alternative for the retirees segment.
The regulator has also been taking steps to develop the capital markets in the country, which includes a strategic roadmap unveiled in early January aimed at transforming the country into a regional investment hub.
