Bangkok--15 Aug--SEC
The SEC defines trust as securities issuer under the Securities and Exchange Act of 1992 in order to form clearer scope of duties and responsibilities of trust, trustee and other parties related to the transaction. When applying to Real Estate Investment Trusts (REITs), the regulations will make clear that REIT manager is responsible for disclosure of information on REITs’ financial status and operational result. Besides, the SEC allows type 1 property fund to borrow for investment only for another year after REIT regulations come into force.
“The SEC Board agrees to define trust established with an objective to seek benefit from investment pools for investors as securities issuer under the Securities and Exchange Act of 1992. Defining trust as securities issuer aims to form clearer scope of duties and responsibilities of trust, trustee and other parties related to the transaction. The rules will be revised to regulate trust as securities issuer, having duty to disclose the information on trust’s financial status and operational result as specified by the provisions of law and in the similar manner as other securities issuers”, said SEC Secretary-General Vorapol Socatiyanurak
Disclosure of REIT information will be in line with international practice that REIT manager will be responsible person, including disclosure of information on operations carried out in the course of REIT management.
Meanwhile, the SEC Board also allows type 1 property fund to borrow for investment for another year starting from the day REIT regulations come into effect, providing that the investment must be made within two months as from a grant of loan. Previously, the SEC Board allowed the same period for establishment of type 1 property fund and increase in scheme capital for additional investment.
“The revision is in line with global practice and does not create undue burden on business sector. In this juncture, the rules governing type 1 property fund will also be revised to promote REIT establishment under the SEC policy to promote new financial instruments to increase attractiveness of the Thai capital market in support of the regional market linkage,” said Mr. Vorapol.