The SEC (Securities and Exchange Commission of Thailand) is holding a hearing to revise SRI (Securities and Exchange Commission of Thailand) criteria, adding investment information from Thai ESG and Thai ESGX regarding JUMP+ stocks.

The SEC (Securities and Exchange Commission of Thailand) is seeking public comments on a draft regulation amending the disclosure requirements for SRI funds and investments in the JUMP+ equity projects of Thai ESG and Thai ESGX, aiming to provide more information for informed decision-making and monitoring of investment management.

7 August 2569 The Securities and Exchange Commission (SEC) We are seeking public comments on a draft regulation regarding the disclosure of information for Sustainability Investment Funds (SRI Funds). This regulation requires Thai Sustainable Development Funds (Thai ESG) and Thai ESGX Funds (Thai ESGX), which invest in shares of companies listed under the Jump Value Enhancement for Listed Companies (JUMP+) program, to disclose investment information and progress tracking of these companies in the factsheet of their prospectus. This aims to provide investors with more information for informed decision-making and better monitoring of investment management. The regulation also includes amendments to increase flexibility in changing the sustainability benchmark index for SRI funds.

Following the SEC's public consultation on the principles of amending the SRI* mutual fund regulations, the feedback and suggestions received have been incorporated into the drafting of the announcement. There are two main points:

1. Disclosure of Investment Information in JUMP+ Project Shares: Thai ESG and Thai ESGX organizations investing in shares of listed companies participating in the JUMP+ project are required to disclose information in the factsheet under the Sustainability Corner section regarding at least the following:

1.1 The proportion of investment in JUMP+ project stocks is expressed as a percentage of the fund's net asset value to provide investors with a clearer view of the portfolio's sustainability characteristics.

1.2 Number of companies and investment proportions, categorized by progress in implementing the JUMP+ plan: companies that have fully implemented key plan objectives, companies that have partially implemented and have plans for improvement, and companies that have partially implemented but have not specified any plans for improvement.

1.3 The proportion of companies in the JUMP+ group in which the mutual fund and asset management companies have engaged within the past year, encompassing direct involvement, collaboration with other investors, and monitoring or communicating with the companies through public forums to support and track their business plans, governance plans, and climate plans (if applicable).

This disclosure will allow investors to consider the investment allocation, the progress of the companies in which the mutual funds invest, and the role of the asset management company in monitoring and engaging with those companies. It will also ensure that the sustainability disclosures of the Thai ESG and Thai ESGX mutual funds are consistent with the actual asset classes invested in, and align with the disclosures for investments in corporate value up plan (CVUP) stocks.

2. Increase flexibility in changing sustainability benchmark indices by revising the project details requirements for SRI mutual funds. This no longer requires the inclusion of a sustainability benchmark in the project details. However, if a mutual fund references a sustainability benchmark, this information must still be disclosed in the full prospectus and factsheet to ensure investors receive complete and necessary information.

This approach will allow asset management companies to adjust sustainability benchmark indices to appropriately align with the sustainability objectives of mutual funds without amending the fund's prospectus. At the same time, other important information of SRI mutual funds, such as investment policy, sustainability objectives, investment framework, investment strategy, risks, and practices in case of non-compliance with the sustainability policy, must still be disclosed according to the relevant regulations.

This update aims to enhance the transparency and reliability of sustainability investment products, enabling investors to better access and compare useful information, while simultaneously reducing regulatory redundancies and facilitating compliance by asset management companies.

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