THAILAND LAW AND PRACTICE Contributed by: Wongsakrit Khajangson, Panupan Udomsuvannakul, Koraphot Jirachocksubsin and Pitchaya Roongroajsataporn, Chandler Mori Hamad a
3.3 Issues Relating to Best Execution of Customer Trades Records available to the public do not show cases of customer complaints relating to the use of robo- advisory services. However, securities and derivatives business opera - tors have an obligation to carry out their business on a best-execution basis as specified in Notification of the Capital Market Supervisory Board No TorThor 35/2556 Re: Standard Conduct of Business, Manage - ment Arrangements, Operating Systems, and Provi - sion of Services to Clients of Securities Companies and Derivatives Intermediaries. As such, securities and derivatives business operators who use robo- advisory technology also have a duty to provide their services on a best-execution basis. 4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities The regulations for both online and offline loan busi - ness activities are generally the same. Different regu - lations apply depending on the type of loan rather than on the business operations of the operator/ser - vice provider. For example, a supervised personal loan is provided to individuals, not corporations. A supervised person - al loan may not be granted where it is more than five times the average monthly income of a borrower with an average monthly income of THB30,000 or above. Pico finance is a personal loan granted to prevent or solve informal debt issues. A Pico finance loan may not exceed THB50,000 or THB100,000, depending on the type of Pico finance operator. However, in 2021, the BOT permitted licensed per - sonal loan business providers to offer digital personal loan services in Thailand with the approval of the BOT. Lenders may grant digital personal loans with a maxi - mum credit amount of THB20,000. Effective rates of interest charged, together with the relevant fees, must not exceed 25% per annum. The BOT regulations relax certain criteria for the provision of personal loans
and provide some flexibility, such as using alternative data for financial service providers to provide online lending services. 4.2 Underwriting Processes There are no specific underwriting processes for online lenders prescribed by regulations in Thailand. Commercial banks may develop their own underwrit - ing standards and compliance measures. When a loan is granted for a specific industry, certain industrial underwriting standards may be enforced. The BOT will observe the underwriting practices of commercial banks and may issue notifications to oversee lending activities. This is intended to enhance underwriting standards if the existing market standards are found to be too lenient. Since 2024, the BOT’s Responsi - ble Lending regulations have required affordability assessments, standardised borrower assistance (eg, persistent debt programmes), clearer advertising standards and enhanced disclosures, with closer supervisory monitoring of compliance. 4.3 Sources of Funds for Fiat Currency Loans As mentioned in 4.1 Differences in the Business or Regulation of Loans Provided to Different Entities , there are no specific online or offline regulations. Online lending is subject to the same regulations as offline lending. Thus, the source of funds, the method of raising funds and any restrictions thereon will depend on the business activity. Non-bank auto-leasing and hire- purchase operators moved under direct BOT/MOF supervision pursuant to a Royal Decree effective in June 2025, with phased compliance into 2026, poten - tially affecting business conduct and cost of funds even though capital sources remain business-driven. 4.4 Syndication of Fiat Currency Loans Online lending is generally for individuals in Thailand. As such, syndication of fiat currency loans is uncom - mon. However, there are no restrictions on syndicating online loans.
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