Thailand opens to higher yielding products

Added 30th July 2015

Thailand’s Securities and Exchange Commission said that it intends to permit the launch of offshore hedge funds and junk bond funds later this year.

Thailand opens to higher yielding products

An SEC secretary said that the regulator plans to issue regulations by the end of September, according to a Reuters report.

“We are preparing our industry and our investors and sales people to become more familiar with the hard-core products,” SEC Secretary General Rapee Sucharitkul was quoted as saying in the report.

Initially only high net-worth investors would be allowed to invest in the new funds.

Locals will also be able to invest more freely in derivatives and commodities futures under the new SEC rules. 

Vira-anong Phutrakul, managing director and head of retail banking at Citibank in Bangkok, told FSA last month that new regulations expected in the coming months will permit Thais to invest in a wide range of offshore products offered by banks in the country.

Although Thailand has opened considerably to global funds, regulations still limit choices.

“Clients want a lot of products today that we can’t offer,” she said. “Investors are looking outside for better yield and diversification.”

Thailand’s mutual fund industry is worth 3.5 trillion baht ($101bn), according to an estimate in the report.

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