Country Manual Products – Update
Thailand
BRP has updated its Country Manual Products for Thailand
| Source of changes | Answers |
|---|---|
| Law / Regulation | No |
| New Position of the Authorities | Yes |
| Evolution of Expert’s Interpretation | Yes |
Definitions & Concepts, Regulatory Overview and Behaviour Template
The Country Manual has been reviewed to ensure that the content of all the documents remains accurate and up to date.
Material changes
The main changes/modifications are as follows:
Finally, the concept of “reverse solicitation” now appears to be recognised and applied by the SEC. Thus, duly documented “reverse solicitation” appears to be viewed as an important mitigating factor for the activities of a foreign (unlicensed) service provider, particularly with respect to (i) contacts with prospective clients via remote means of communication (remote) and (ii) activities conducted onshore in Thailand with other qualified clients (at target). However, in the absence of a formal rule, a cautious approach is recommended.
In alignment with the Country Manual Private Banking (CM PB), the provision of macroeconomic information/reports and investment research/financial analysis to Retail Investors should only be provided on a one-to-one basis and if covered by an ongoing advisory agreement concluded in compliance with cross-border rules, via remote means of communication into Thailand (remote). Accordingly, the Country Manual Products Behaviour Template (CM P BT) answers this scenario with “Grey zone/YES”.
It is further highlighted that the provision of publications and other marketing materials referring to specific financial products (such as newsletters, teasers, presentations, summaries, term sheets, factsheets, offering documents and prospectuses) is generally deemed distribution triggering licensing as well as product registration and documentation requirements.
The provision of investment advice generally triggers the “local distribution rules” in Thailand. There is no longer a distinction between investment advice based on a written advisory agreement and such provided without formal basis. However, in alignment with the CM PB, an exemption is made in relation to foreign (unlicensed) service providers providing advisory services on a one-to-one and occasional basis (i) to Qualified Clients in/into Thailand (at target/remote), (ii) to Other Qualified Clients based on an ongoing advisory agreement concluded in compliance with cross-border rules and covering the relevant financial products in/into Thailand (at target/remote) or (iii) on a one-to-one basis within the framework of an ongoing advisory agreement to Retail Investors into Thailand (remote). Accordingly, the CM P BT provides the answer “Grey zone/YES”.
For more information, please contact us: info@brpsa.com
Geneva, November 4th, 2024