Securities Businesses No Longer Off Limits to Foreigners Under Foreign Business Act

Under Thailand's Foreign Business Act (FBA), foreigners are generally not permitted to own service businesses in Thailand without first obtaining a foreign business license or qualifying under another exemption.  

On 18 March 2013, however, the Ministry of Commerce issued regulations permitting foreigners to operate certain securities related businesses without having to obtain a foreign business license.  The regulations are effective as of 19 March 2013 and cover services relating to securities (14 types), futures contracts (3 types), and capital market trusts.  While the FBA may no longer be an impediment to foreign ownership of these securities-related businesses, other hurdles under Thailand's securities laws remain for foreign applicants, such as the licensing requirements for such businesses under the Securities and Exchange Act B.E. 2535, Derivatives Act B.E. 2535 and Trust For Transactions in Capital Markets Act B.E. 2550 and related regulations

By: Douglas Mancill

last updated on 20 March 2013