SEC ready to allow asset management companies to offer Thailand ESG Fund for sale in December 66.
On November 22, 2566, the Securities and Exchange Commission of Thailand (SEC) announced that, following the Cabinet's approval at its meeting on November 21, 2566, of tax measures to promote sustainable investment in Thailand, as proposed by the Ministry of Finance, tax benefits will be granted for purchasing units of the "Thailand ESG Fund" to support investment in domestic businesses that will drive sustainable development in Thailand. This will utilize capital market funds as a mechanism to help achieve the national sustainability strategy goals, as well as support long-term savings through capital market investment. The SEC will subsequently issue regulations to support this fund.
Ms. Pornanong Busaratrakul, Secretary-General of the Securities and Exchange Commission (SEC), revealed that “the Capital Market Supervisory Board (CMSB), at its 11th meeting of 2566 on November 20, 2566, approved the principles for amending the regulations to support the establishment of the Thailand ESG Fund (Thai ESG), which aligns with government policy.”
Currently, the SEC has completed drafting the announcement and expects it to be published in the Royal Gazette around the beginning of December 2566. In the meantime, the SEC allows asset management companies to submit draft establishment documents. Thai ESG allows the SEC to consider in advance. To facilitate the asset management company and prepare to offer such mutual funds for sale to investors quickly. And after the announcement comes into effect, the SEC will be able to approve the establishment of Thai ESG by the beginning of December 2566 as well, so that investors can receive tax benefits from investing in such mutual funds in the tax year 2566. ”
This is to be in line with government policy guidelines. The Capital Market Supervisory Board has resolved to approve the principles for Thai ESG to invest in assets issued by the Thai government or businesses established under Thai law as follows:
- Stocks listed on the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (mai) that have been selected by SET as having outstanding environmental characteristics. (environment) or sustainability (ESG) and or
- Stocks that are listed on SET and mai that have disclosed greenhouse gas emissions information, management plans, and set goals to achieve Thailand's greenhouse gas emissions reduction goals. that has been verified for carbon footprint preparation by a verifier and or
- Debt instruments that meet the criteria for offering sustainability-related debt instruments* and digital tokens for fundraising related to sustainability that meet standards similar to such debt instruments.
Thai ESG must disclose information on the sustainability of mutual funds in accordance with the principles of Sustainable Mutual Funds (SRI Funds) so that investors will receive sufficient information to make investment decisions. Thai ESG will be entitled to waive fees for establishment and amendment requests. Projects from the SEC as well as SRI Fund**
In addition, the government sector recognizes the importance that people need to have savings and investments in order to create long-term financial stability. Therefore, we support tax benefits for investors in Thai ESG. Investors can invest in Can be deducted from taxes up to a maximum of 30 percent of assessable income. Only for the part not exceeding 100,000 baht for the tax year in which the investment is made. Including money or benefits received from redemption of investment units. will be exempt from being included in tax calculations. If the investment meets the conditions announced by the Revenue Department The income earner must hold investment units in Thai ESG for not less than 8 years from the date of purchasing the investment units.
Note:
* Debt instruments related to sustainability include Green bond, Sustainability bond and Sustainability-linked bond.
** Regulations related to Sustainable Mutual Funds (SRI Funds) require asset management companies that manage SRI Funds to fully disclose relevant information under the same disclosure standards. So that investors can conveniently compare information between SRI Funds. and have sufficient information to make investment decisions It also helps reduce the risk of green bleaching. (greenwashing) by the SEC has announced the exemption of fees, including the fee for requesting approval for establishment of 100,000 baht per mutual fund and the fee for requesting amendments to the mutual fund management project, not exceeding 5,000 baht per mutual fund.
