Thailand Securities & Exchange Commission has revised the regulatory requirements that apply when securities and derivatives business operators cannot maintain net capital, adding specific rules on safeguarding client assets and on collecting and assessing client information under Know Your Customer processes. The amendments are intended to protect client assets and support the continuous provision of services and apply from 1 September 2025. The revised framework sequences required actions by prioritising the suspension of specific services that may pose systemic risk, then transferring client assets and derivatives positions to new operators and, where needed, closing out derivatives positions. Operators that also conduct digital asset businesses can apply for an exemption from securities and derivatives business restrictions where the net capital shortfall results from rapid increases in the value of digital assets in custody or digital asset trading volume, provided they can demonstrate sufficient liquidity to continue normal securities and derivatives operations. Client asset custody rules now allow transfers without client consent in specified cases, including when an operator cannot maintain net capital, when a transfer is ordered under other laws, or when an operator plans to cease or transfer business operations by licence type. Receiving operators may provide securities selling services and reduce transferred derivatives positions while client information collection and KYC are still in process, subject to conditions. The SEC noted that most respondents supported its proposals during a March to April 2025 public hearing and the revised notifications have been published in the Government Gazette.
Thailand Securities & Exchange Commission 2025-09-02
Thailand Securities & Exchange Commission tightens net capital breach framework for securities and derivatives operators and updates client asset and KYC rules
The Thailand Securities & Exchange Commission updated regulations for securities and derivatives operators unable to maintain net capital, emphasizing client asset protection and Know Your Customer processes. The framework prioritizes suspending risky services, transferring client assets, and closing derivatives positions, with exemptions for digital asset businesses under certain conditions. Effective 1 September 2025, the rules allow asset transfers without client consent in specific scenarios and were published after public consultation.