Securities related services in Thailand are principally regulated under the Securities and Exchange Act B.E. 2535 (the “SEC Act”). The SEC Act requires anyone who engaged in certain activities pertaining to securities to obtain one or more licenses, depending on the scope of their service activities, from the Ministry of Finance under the supervision of the Securities and Exchange Commission of Thailand (the “Thai SEC”).

Securities related services typically fall within one of the following three general categories:

1. “investment advisory services”, which are defined as “giving advice in the normal course of business to the public, whether directly or indirectly, about the value of securities or the suitability of investing in those securities and the purchase or sale of any securities in consideration of a fee or other remuneration, but excluding the giving of advice to the public in the manner as specified in notifications issued by the Thai SEC”.
2. “securities brokerage services” which are definedas “acting as a broker or agent in the purchase, sale or exchange of securities in the normal course of business in consideration of a commission, fee or other remuneration therefrom”.
3. “private fund management services” which are defined as“the management of funds of a person or a group of persons who has authorized the management of investment to acquire benefit from securities, whether or not investment in other assets is also made, which management is conducted as an ordinary course of business, in consideration of a fee of other remuneration”

Other categories include “securities dealings” and “mutual fund management”.

As of 1 January 2012, a newly established Thai private limited company or public limited company may register as a securities company and apply for a securities business license in the areas of “securities brokerage”, “securities dealings” and “investment advisory services”.  Establishment of an Asset Management Company (which is a more complicated structure than a Thai private company) will still be required, however, for a license to provide services related to “mutual fund management” or “private fund management”.