Bangkok--21 Feb--SEC
SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board recently approved the amendment to rules governing advertisement and sales promotion for all business operators in the capital market. Expected to become effective in Q1/2013, the streamlined rules will set the same advertising and sales promotion standards for all businesses with emphasis on sufficient information on offered products and services for investors’ understanding and investment decision; particularly characteristics, return payment conditions, and the risks involved, not attracting or persuading investors to make their decision because of premiums or gifts.
“Amid the current high competition environment, advertising and sales promotions produced by business operators often lack sufficient information on products and services. At times, advertising and sales promotions employ premiums or gifts to attract the investing public and rush them into investment decisions. In this connection, all business operators are required to place high importance and clearly communicate the information contained in their advertisements.
The advertisement must not contain false, exaggerating or misleading information. It also must not rush investors into decision making within a limited timeframe and not mislead or guarantee investment return. If related to sales promotion, the information on products or services being offered must be prominent. If containing a referral statement from others, furthermore, the source of the information must be reliable and clearly specified. In case of appointing any person as a co-advertising producer, such person must be subject to supervision to comply with the relevant rules.
On sales promotions, it must not persuade or urge investors to make investment decision without taking into account fundamental factors. In addition, lucky draw campaigns are prohibited to prevent the overinvestment or overuse of services.
The revised rules will be applicable to all types of business operators, i.e., securities business, derivatives business and other related products and services for standard practice across the industry. In addition, the business operators must comply with the SEC’s approved advertising or sales promotion guidelines issued by the Thai Listed Companies Association and Association of Investment Management Companies.
Any business operator failing to comply with the specified rules will be subject to the SEC’s order to cease the advertising or sales promotion, rectify the information in such advertisement or sales promotion. The SEC may also order such business operator to clarify to investors with complete and correct information, or determine that any further advertisements or sales promotions proposed by the business operator will be required to obtain the SEC’s prior approval.”