The Thailand Securities and Exchange Commission has opened a consultation on a draft notification on the management of unclaimed client assets held by securities companies. The proposal would revise the framework for inactive clients' assets to preserve safekeeping, make it easier for clients to trace and reclaim assets, and give securities companies and derivatives brokers more flexibility when they cease operations or cannot maintain net capital. The draft would broaden the exemption that allows unclaimed client assets to be transferred to another business operator without client consent, including when a firm intends to surrender all business licenses. Where a firm has taken reasonable and appropriate steps but still cannot contact clients or transfer their assets, it could submit lists of inactive clients to the Central Securities Depository to request issuance of securities certificates. Firms using that route would have to disclose information to clients under SEC-prescribed procedures, such as searchable website notices for at least six months, and report the outcome of transfers, certificate issuance or asset deposits to the SEC within 10 business days after completion. For firms that cannot maintain net capital, the same CSD route would be available if client contact or asset transfer remains unsuccessful, and the required actions would need to be completed within 30 business days from the date the firm falls below the net capital requirement. The draft would also require the Central Securities Depository to retain records of unreachable securities owners and make that information available through prescribed channels so owners can later verify and reclaim their rights.

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