Stock Exchange Of Thailand Together With Mutual Fund Alliances Make Advances In Fund Service

A fund service platform was developed by the Stock Exchange of Thailand (SET) together with alliances from the mutual fund sectors. The platform aims to widen mutual fund access efficiently. This system is set to launch early 2017.


The fund service platform


Pakorn Peetathawatchai, Senior Executive Vice President of SET, mentioned that SET organized a number of collaborative workshops in order to create operational standards regarding mutual fund distribution. This is after the memorandum of understanding (MOU) was signed on March 15, 2016 by around 40 mutual fund businesses or firms. During the period, SET asked for input from multiple businesses in the mutual fund industry. They did this to develop the fund service platform for facilitating the investment of the public in mutual funds thus, making investments very convenient. They are still about to run operational tests or industry-wide tests before the end of the year.


Benefits to consumers and stakeholders


The Deputy Secretary-General of the Securities and Exchange Commission (SEC), Tipsuda Thavaramara mentioned that this is a crucial milestone for the creation of the “national infrastructure investment platform”. The platform will benefit the reduction of operational burdens for the unit investment trusts and the investment management companies while improving services that meet a consumer’s needs like investment consultations. Furthermore, the initiative will build some standards for distribution of mutual funds benefiting the stakeholders’ needs.


The president of the Association of Investment Management Companies (AIMC) and chairman of the Federation of Thai Capital Market Organizations (FETCO), Vorawan Tarapoom mentioned that the fund service platform greatly facilitates consumers’ access to quality mutual funds that meet needs and create long standing financial stability. Consequently, it will streamline the operations for the businesses associated with mutual funds while increasing the Thai market competitiveness. The mutual fund sectors are willing to embrace the platform as benefits are both for the public and stakeholders.


Commitment from companies


Currently, there are many securities companies, asset management companies, unit investment trusts, commercial banks and life insurance (ประกันชีวืต) companies that have set a commitment to make use of the fund service platform to communicate a widespread access for the public to mutual funds.