Market Specifications – Investment Funds – Thailand
Limit on THB aggregate account balances
The Bank of Thailand imposes a daily limit of THB 200 million outstanding at the end of the day on Thai Baht (THB) cash balances in the accounts of non-residents.
This limit applies to aggregate account balances held by any non-resident entity with any Thai bank, including the total cash balance held in our Non-Resident Baht Account for Securities (NRBS) where amounts are not split according to the underlying beneficial owners.
In order to comply with this limitation, CBL will enforce the following measures:
- Clients must keep their THB balances strictly at the lowest amount. If this is not observed, CBL may be forced to perform an automatic same-day foreign exchange, without advice and charged at a penalty foreign exchange rate, on those underlying accounts that have the largest balances. The foreign exchange will consist of a sale of THB against USD with same-day value date.
- THB payments to CBL account with Standard Chartered Bank (Thai) Public Company Limited must be related to an immediate purchase of securities. Any unadvised incoming funds may be rejected.
More information can be found on the Cash Services – Thailand page.
Pre-paid funds (subscription settlement at T)
Majority of the Thailand investment funds are pre-paid with subscription settlement at Trade Date (same date of subscription order). Clients must ensure to fund the Clearstream Banking NRBS account before the CBL fund subscription cut off time of Trade Date.
Clients may refer to the Published Fund List for details.
Investment Funds denominated in THB only
Only THB denominated Thailand investment funds are accepted for subscription/redemption/switch orders through CBL on the Register market.
Account setup
A sub-account for each underlying client of CBL will be set up by each fund manager. Fund managers may take up to 4 weeks to complete the set up of the account. Some fund managers in Thailand may require the Distribution Agreement to be in place before allowing the client to subscribe into the respective Thailand investment funds, and the account set up might take more than 4 weeks. Some fund managers may also request CBL clients to submit documents for KYC/due diligence purposes for sub-account set up.
CBL deadlines
As the Thai Baht currency deadline is earlier than the fund deadlines, clients are requested to adhere to the CBL deadline.
Prospectus translation
Prospectuses of Thailand investment funds are written in Thai. Translations from Thai language to English can be done by the fund manager upon request. It may take up to 6 weeks for the fund managers to translate the documents into English. As such, lead time is required before these Thailand investment funds can be accepted in CBL.
Capital Gains Tax
Effective 20 August 2019, foreign investors like CBL as an account holder of Thailand investment funds will be subjected to 15% tax on capital gains derived from the disposal of mutual fund units. The tax will be withheld at source.
Disclaimer
The information contained in the Market Specifications is based on the market practice that CBL was made aware of from different sources. This is not intended to be a comprehensive guide of all local market practices, and CBL disclaims any responsibility as to the accuracy and completeness of the information. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Market Specifications do not constitute legal advice and clients should seek advice from independent professional counsel.
Clients are responsible for ensuring compliance with the Market Specifications (where applicable), and agree to indemnify and hold harmless, CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.