The Thailand Securities and Exchange Commission has revised the definition of “Institutional Investor” to treat private funds (PF) as institutional investors, removing the requirement for firms to look through PF structures and assess the qualifications of individual PF clients. The amendment took effect on 1 May 2025. The change is based on PF being managed by licensed securities business operators in the private fund management category, which are supervised by the SEC and expected to have relevant expertise. Under the framework referenced by the SEC, these operators must classify investors and manage client investments in accordance with each client type, aligning the institutional investor definition with PF supervisory guidelines while supporting operational flexibility and maintaining investor protection.
Thailand Securities & Exchange Commission 2025-05-02
Thailand Securities and Exchange Commission classifies private funds as institutional investors and removes look-through client qualification checks
The Thailand Securities and Exchange Commission has revised the definition of "Institutional Investor" to include private funds (PF) without requiring firms to assess individual PF clients. Effective 1 May 2025, this change aligns with PF supervisory guidelines, supporting operational flexibility while maintaining investor protection.