THAILAND Law and Practice Contributed by: Wongsakrit Khajangson, Panupan Udomsuvannakul, Koraphot Jirachocksubsin and Pitchaya Roongroajsataporn, Chandler Mori Hamada
2.16 Reverse Solicitation No authority in Thailand has officially endorsed reverse solicitation; however, it is a practice fre - quently adopted by foreign business operators. In this regard, it is recommended that service providers exercise heightened caution when offering services to Thai individuals by relying on this concept. Ensuring independent initiation by the client and maintaining clear documenta - tion is crucial to avoid regulatory scrutiny and potential legal consequences. 3. Robo-Advisers 3.1 Requirement for Different Business Models Thailand has not adopted regulations specify - ing which business operators or activities require the use of robo-advisers, although some Thai fintech operators do utilise robo-adviser tech - nology. Wealth advisers are encouraged to use fintech to generate financial solutions and to serve as an aide to financial planning under the SEC’s frame - work. According to the Office of SEC’s Notifica - tion No SorThor 31/2561 Re: Rules in Details on Wealth Advisory Service Business, operators must complete the process of client contact and services in five steps, as follows: • exploring and understanding customers; • constructing an investment portfolio; • implementing the portfolio according to the asset allocation plan; • monitoring and rebalancing the portfolio; and • providing consolidated reports for clients’ review.
A wealth adviser must also have an electronic system supporting the actions under the third and fourth points above. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers Legacy players must adhere to regulations relevant to their traditional business activities, including implementing robo-advisory services, and they have quickly adapted to and incorpo - rated these robo-advisers into their operations over the last few years. Private sector banks use robo-adviser-based solutions to develop tools for customer satisfac - tion, new products and services, and improve - ments. The most widespread use of robo-advisers occurs in wealth management and developing custom-made trading and wealth solutions. 3.3 Issues Relating to Best Execution of Customer Trades Records available to the public do not show cas - es of customer complaints related to the use of robo-advisory services. However, securities and derivatives business operators have an obligation to carry out their business on a best-execution basis as specified in the Notification of the Capital Market Super - visory Board No TorThor 35/2556 Re: Standard Conduct of Business, Management Arrange - ments, Operating Systems, and Provision of Services to Clients of Securities Companies and Derivatives Intermediaries. As such, securi - ties and derivatives business operators who use robo-advisory technology also have a duty to provide their services on a best-execution basis.
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