The Thailand Securities and Exchange Commission has opened a consultation on proposed principles for regulating introducing broker agents used by securities and derivatives business operators. The proposal would set clearer supervisory standards across the full IBA lifecycle, from selection and appointment to operations and oversight, with a particular focus on people providing financial information on online and social media platforms who in practice introduce or solicit clients. It is intended to address risks around inaccurate or unreliable information, unauthorized advice, and weak investor disclosure. Under the proposal, an IBA would mean any individual or legal entity that introduces or solicits clients for securities or derivatives services, whether or not it receives remuneration. Business operators would have to perform due diligence on IBAs, sign written agreements, and monitor their conduct regularly, including reporting to the SEC every six months. IBAs would be limited to activities such as providing information about business operators, collecting account opening documents, and conducting preliminary client screening. They would be barred from core regulated functions including approving credit limits or account openings, giving investment advice, executing orders, managing or safeguarding client assets, or acting under a power of attorney for clients. The framework also allows up front and retainer fee arrangements if they are transparent, do not lead to excessive client charges, and do not create improper solicitation incentives. Investors must be told that the person is acting as an IBA and receives remuneration. Where an industry association has SEC approved operational standards for IBAs, firms would also need to comply with those standards. The consultation runs until 5 July 2026.

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