Bangkok--24 Jul--SEC
The European Commission (“EC”) announced its decision to recognize Thailand auditor oversight under SEC’s supervision as equivalent to those of the European Union (“EU”) member states. As a consequence, the SEC approved auditors will be exempted from registering with respective audit regulators of EU.
SEC Secretary-General Vorapol Socatiyanurak said “The EC’s recognition reflected the SEC’s effort in the past years in implementing more stringent inspection on audit quality assurance system of audit firms. The quality of audit activities of Thai listed companies thus conforms to international standards and helps enhance transparency and investor confidence in financial reports and disclosures in the Thai capital market. In strengthening audit quality, the SEC revised regulations on approval of auditors whereby the approved auditors must work for audit firms whose audit quality assurance system must be reviewed by the SEC.
By the announcement, Thailand is now recognized as an EU equivalent country confirming EU and Thailand’s mutual reliance in that EU member states are able to rely on supervisory work of Thailand’s oversight systems, and vice versa. Accordingly, EU investors in Thai listed companies will be more confident in term of sufficient investor protection. The announcement further illustrates that the SEC’s practices and supervision are in conformity with international accepted standards. Thai listed companies will be allowed to raise fund and use Thai auditors in EU jurisdiction; thereby enhancing their competitive edge in the long run.
At present, EC has recognized 20 countries and territories as EU equivalent, such as, Australia, Canada, China, Japan, Singapore, South Korea, Switzerland, The United States of America, Brazil, Indonesia, Malaysia, and Thailand.