The Thailand Securities and Exchange Commission is consulting on draft rules intended to give asset management companies greater flexibility in handling impaired or illiquid mutual fund assets while strengthening disclosure and fair treatment of unitholders. The draft follows an April-June 2026 consultation on the underlying principles, which received broad support. For side pockets, the proposals would allow eligible unitholders to be repaid with units in the original fund as an alternative to cash, subject to terms set out in the fund scheme. They would also limit charges to necessary and directly related expenses, require disclosure of how those expenses are allocated, and establish rules for valuation, asset disposal and pro rata repayment. For suspensions of dealing, asset management companies would face clearer requirements to notify affected unitholders, inform other investors and report the reasons and action plan to the commission. Suspensions lasting more than one business day would trigger further disclosure before dealing resumes and reporting on the fund’s investment position.
2026-09-18Thailand Securities & Exchange Commission
Thailand Securities and Exchange Commission consults on draft mutual fund side pocket and dealing suspension rules
The Thailand Securities and Exchange Commission is consulting on draft rules for mutual fund side pockets and suspensions of dealing, following broad support for principles proposed earlier in 2026. The rules would expand repayment options for side pocket assets, regulate related expenses and valuation, and strengthen investor notifications and regulatory reporting when dealing is suspended.