SEC licenses wealth advisers

The Securities and Exchange Commission (SEC) has allowed business intermediaries operating in the capital market to become licensed wealth advisers, aiming to enhance access to investment advisory service and investment options for the public.

“The SEC’s objective is to provide people with access to the capital market. However, financial advisory or financial planning are often limited to high-income earners,” said SEC secretary-general Rapee Sucharitakul.

“This is the impetus for the SEC’s ‘Wealth Advice for All’ project, which encourages capital market businesses to offer financial advisory and planning, with wider access for the public at a low cost.”

The securities watchdog discussed the matter with business operators in the capital market and came up with a relevant regulatory framework to be approved as licensed wealth advisers.

The framework came into effect on July 16, whereby every category of business intermediaries in the capital market, including brokerage firms, unit trust fund managers, mutual fund businesses, private fund management businesses and investment advisers, can seek the SEC’s approval to become wealth advisers.

There are around 40 business intermediaries that have expressed interest in becoming licensed wealth advisers, said the SEC.

Licensed wealth advisers can choose from a range of investment services based on their business models.

The design of investment services must consist of customer surveys and understanding; setting an investment structure; investment made according to an investment plan; monitoring and improvement in investment; and reporting on customer investment overview, said the regulator.

“Business operators play a key role in Thais’ financial well-being over the long run, so the SEC is inviting business operators to become licensed wealth advisers,” said Mr Rapee.

“The effective regulatory framework facilitates business operators to offer investment services more conveniently and quickly.”