The Thailand Securities and Exchange Commission has amended investor service and communication rules for securities companies to cover the offering of subordinated bonds issued by securities companies or derivatives business operators that are used in net capital calculation (net capital bonds or NC bonds). The changes bring NC bonds within the framework for high-risk or complex capital market products so that investor-facing practices better reflect product risk. NC bonds are now explicitly classified as high-risk or complex products, meaning firms must follow the related communication and investor service requirements when offering them. This includes providing information and risk warnings so investors understand product characteristics and risks, and administering a knowledge test before an investor’s first investment in NC bonds that mature upon company dissolution. The amended notifications take effect on 16 April 2025.
Thailand Securities & Exchange Commission 2025-04-09
Thailand Securities and Exchange Commission designates net capital bonds as high-risk products and applies complex-product investor safeguards
The Thailand Securities and Exchange Commission has revised rules for securities companies, classifying net capital bonds (NC bonds) as high-risk or complex products. Firms must adhere to communication and investor service requirements, including risk warnings and a knowledge test before initial investment. The amendments are effective from 16 April 2025.