Investment Rules in Overseas Listed Derivatives Relaxed

Starting on 1 July, individual investors from Thailand will be allowed to freely invest in overseas-listed derivatives.

As reported in the Nation, SEC Secretary General Vorapol Socatiyanurak stated that the Capital Market Supervisory Board has amended the investment rule by lifting the limitation on investment in overseas-listed derivatives in order to "increase the variety of investment choices and enhance [investor] experiences in overseas investment."  Prior to the amendment, such investment was limited to hedging purposes only.

Some protections will remain, though, as the board will require all underwriters (banks and securities firms) to conduct a "suitability test" in order to offer products and investment advice according to the investors’ financial ability.