The Thailand Securities and Exchange Commission has launched a public consultation on proposed amendments to rules governing how mutual fund fees are calculated and disclosed, aiming to ensure fees are clearly explained and aligned with the services investors receive while allowing asset management firms greater flexibility to set fee structures that fit their service models. The package would establish a “clear and fair” fee-collection principle backed by governance mechanisms for monitoring and reviewing fee structures at least annually, with fund supervisors required to review fee appropriateness. It would also introduce a performance fee option for asset management companies subject to conditions, including that it be predetermined, separate from the management fee, limited to eligible fund types, designed to reflect manager capability rather than overall market movements, and disclosed in fund reports. Management fee setting and disclosure would be revised while retaining the ability to specify maximum and base management fees with an appropriate gap; increases in actual management fees would require necessary and reasonable justification, full disclosure, and investor notification at least 15 business days in advance, while promotional fee reductions would need to be clearly defined and capped at one year. Trailer fee practices would be tightened by requiring asset management companies to assess, consistent with fiduciary duties, whether such fees are appropriate to services and do not create undue costs or conflicts of interest, and to disclose in the prospectus whether trailer fees are paid along with their purpose, investor impact and related services. Brokerage agents would face strengthened sales conduct standards, including complete and accurate sales documents, clear disclosure of fees and conditions, conflict-of-interest warnings and trailer fee details, measures to prevent conflicts from compensation structures, and ongoing customer care consistent with fees received. Comments are open until 21 December 2025.
Thailand Securities & Exchange Commission 2025-11-21
Thailand Securities and Exchange Commission consults on reforms to mutual fund fee calculation disclosure and sales conduct
The Thailand Securities and Exchange Commission is consulting on proposed amendments to mutual fund fee rules to enhance clarity and align with investor services. The amendments include a "clear and fair" fee-collection principle, a performance fee option, and revised management fee setting and disclosure requirements. Additionally, trailer fee practices and brokerage agents' sales conduct standards would be tightened to prevent conflicts of interest and ensure transparency.