Many people in Thailand are now focused on their personal investments. Investors want to know the products in which to invest and how to plan their finances. They are therefore increasingly turning to investment advisers. Given the increasing demand for these services, it is worthwhile to examine how investment advisers are regulated.
The Securities and Exchange Act includes investment advisory services within the scope of the securities business, which is subject to regulation by the Finance Ministry and the SEC. The Act defines "investment advisory service" as giving advice to the public, whether directly or indirectly, about the value of securities or the suitability of investing in those securities and the purchase or sale of any securities, for a fee or other remuneration. Specific SEC notifications may specify ways in which advice can or cannot be given.
Subject to certain exceptions, the law stipulates securities business can be undertaken only by a limited or a public limited company, or by a financial institution established under other laws, and holding a licence granted by the finance minister, on the SEC's recommendation.
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