SEC reveals 2013 strategic plan, driving 6 initiatives to accommodate market needs
Bangkok, January 14, 2013 – The SEC revealed four key strategies, highlighting six initiatives to be launched in 2013. Its strategic direction includes: reaching out in response to the needs of businesses and investors, preparing a set of common offering rules classified by risk and complexity levels of products to boost flexibility in offering new products and services, and introducing a new investment supermarket license to provide an opportunity to the investing public to have more accessibility to the capital market.
The SEC’s 2013 strategic plan comprises four key strategies including (1) reaching out to all parties to allow businesses and the public to make greater use of the capital market; (2) building a strong foundation for sustainable development, (3) increasing the efficiency of the regulatory regime, and (4) exploiting the benefits from the growth of emerging Asia, with the objectives for the Thai capital market to serve the needs of all types of fund seekers and investors, facilitate capacity building and enhance competitiveness of the private sector, as well as foster sustainable growth of the country’s economy. Details can be summarized as follows:
(1) Reaching out to all parties to allow businesses and the public to make greater use of the capital market This is to enhance retail investors and the general public’s ability in managing their money, as well as improve their accessibility to the capital market, including small and medium-sized enterprises (SMEs), to be at the standard level and self-reliance by utilizing various forms of accessibility to create ultimate efficiency and benefits. Key initiatives to be launched are:
1.1) Wealth Management for the Masses –To educate the public about asset allocation and enable them to access the products suitable to their investment profile. This would allow them to have sufficient assets to meet their needs for long-term living. Besides the existing channels for financial products distribution, the SEC has initiated a new license called “investment supermarket” to allow other potential intermediaries to enter the capital market, thereby providing investors with more convenient access, as well as comparative data of asset management companies’ products for their investment decision;
1.2) Capital Market for All – to facilitate fund raising of SMEs and potential businesses by educating them about how to raise funds from the capital market so as for them to be well-prepared for the upcoming ASEAN Economic Community (AEC) in 2015. The SEC will create a venue for fund seekers, financial advisors, auditors, and investors (including venture capital) to meet and develop networks through a variety of activities, such as focus groups, seminars, training, websites or social networking, etc. This is to make another step forward, after the SEC’s initiatives in 2012, such as “Pride of the Province Project” that focuses on provincial businesses.
(2) Building a strong foundation for sustainable development Priorities will cover development of businesses in the capital market, development of investors, mechanisms to drive market discipline, and enhancement of enforcement efficiency. Initiatives include the preparation of the “Sustainable Development Master Plan” for improving the quality of businesses in the capital market in line with international ideas concerning becoming a responsible company, covering environmental and social aspects, corporate governance, and anti-corruption. The Master Plan will set standards and propose measures for developing both the businesses and investors, creating mechanisms for driving self discipline and market discipline in addition to regulatory discipline, and promoting corporate governance culture in line with international standards, thereby boosting sustainable growth of the Thai economy.
(3) Increasing the efficiency of the regulatory regime This is to help shorten procedures for businesses, yet enhancing their competitive edge. However, it will be carried on based on a reasonable level and speed so as for the regulator to be able to manage exposed risks promptly. In this regard, the SEC will draft a set of common rules to accommodate the offering of new financial products to correspond with market needs and financial innovation. The criteria will be classified by the levels of risk and complexity.
(4) Exploiting the benefits from the growth of emerging Asia The SEC will take an active role in supporting the development of neighboring countries by facilitating the investment of businesses in the region for mutual benefit and sustainable growth. The SEC’s initiatives are:
4.1) Networking and continued capacity building for the Greater Mekong Sub-region (GMS) – The cooperation will be a further step to the signing of memorandum of understanding and the establishment of a capital market forum to exchange knowledge and experience for mutual sustainable development;
4.2) Fund raising vehicles for investment in infrastructure of GMS countries and opportunity for Thai mutual funds – This is, for example, infrastructure funds in GMS. Also, the SEC will concurrently allow Thai mutual funds to invest in the GMS to obtain benefits from their growth.
“The SEC’s six initiatives clearly reflect the direction of the Thai capital market development under the SEC’s strategic plan; prepared to correspond with short-term and long-term changing environments both domestically and internationally. The SEC has a strong determination to develop the Thai market to be for all and can actually respond to all parties’ needs. Our market will have strong immunity based on good corporate governance practice, and be an importance source of fund raising and investment for the private sector and investors; so as to function as the main pillar for driving forward the economy to sustainable growth on par with international counterparts. This is in accordance with the Capital Market Development Master Plan’s vision that the Thai capital market is the key mechanism for aggregating, channeling, and monitoring economic resources in an efficient manner, contributing to development of the country’s potential and competitiveness,” said SEC Secretary-General Vorapol Socatiyanurak.