Bangkok--24 Jul--SEC
SEC Secretary-General Vorapol Socatiyanurak revealed that the Capital Market Supervisory Board approved the amendment to regulations governing establishment and management of Real Estate Investment Trusts (REITs) to enhance flexibility and promote the establishment of REITs.
The amendment will allow REIT trustee to participate in more REITs related businesses, providing that REIT trustee must be independent from REIT manager.
For the participation in REITs related businesses, such as underwriting or financial advisory service, a Chinese wall to prevent conflicts of interest among their business units or sufficient check and balance systems must be in place. This is to ensure that REIT trustee will perform duty for the utmost benefits of REITs and REIT unitholders. In this connection, the SEC will prescribe further guidelines in details.
“The Capital Market Supervisory Board also approved that an application for establishment of property fund allowed to be filed with the SEC within December 31, 2013 must be for setting up of specific property fund only. In addition, a management company is required to submit to the SEC a due diligence certification.” Mr. Vorapol said.