Bangkok--11 Sep--SEC
The Securities and Exchange Commission (SEC) and the Association of Investment Management Companies (AIMC) agree on introducing investment risk management guideline and due diligence checklist before investing in complex financial products to promote business standard and competitiveness.
SEC Secretary-General Vorapol Socatiyanurak said that the SEC approved the AIMC’s investment risk management guideline and due diligence checklist before investing in complex financial products with a view to elevating the standard of investment management business to be on par with international standard and also enhancing the asset management companies’ competitiveness.
To comply with the guideline, the asset management companies must put in place investment risk management system appropriate for scope, quantity and complexity of their businesses. In addition, risk management structure and system must be equipped with mechanisms for check and balance, control, monitoring, and escalating risk reports and mutual funds’ performance to the board of directors on a regular basis.
In this connection, the asset management companies must fill in the due diligence checklist before investing in or entering into complex financial products or transactions whereby associated risks and return must also be studied. Moreover, assessment inthe aspect of appropriateness to investment policy and investment management system must be made and reviewed on a continual basis.
“The SEC and the AIMC have continual cooperation to lift up the standard of Thai investment management business to comply with the international standard.The investment risk management guideline and due diligence checklist will help strengthen business sector to be ready for increasingly fierce competition,” saidMr. Vorapol.