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Thai Authorities Gear Up for ThaiESGx Launch and LTF Transfers Next Week

Thai Authorities Gear Up for ThaiESGx Launch and LTF Transfers Next Week

Provided by Nation.

Ministry of Finance, SEC, AIMC, and SET confirm all systems go for new sustainable funds and switching from existing equity schemes

 

Thai authorities and key financial bodies have confirmed their readiness for the launch of the new Thai Sustainable Investment Funds (ThaiESGx) and the commencement of transfers from existing Long-Term Equity Funds (LTF) next week, starting on May 2nd and May 13th respectively. 

 

The Ministry of Finance, the Securities and Exchange Commission (SEC), the Association of Investment Management Companies (AIMC), and the Stock Exchange of Thailand (SET) have all stated that preparations are complete for the initiative, which aims to channel investment into sustainable businesses and bolster the local capital market.

 

The launch will see 37 ThaiESGx funds from 19 asset management companies (AMCs) become available, pending final approval. These new funds offer tax incentives for fresh investment and for investors looking to switch out of their existing LTFs over a two-month period in May and June 2025, in accordance with Revenue Department regulations.

 

The investment management industry has been working towards a coordinated launch of ThaiESGx for sales starting on May 2nd, with the infrastructure in place to support transfers from LTFs commencing on May 13th.
  

The SET's website will allow investors to view all their LTF holdings in one place from May 2nd, facilitating informed decisions about potential switches to ThaiESGx to take advantage of the tax breaks.

 

Warotai Kosolpisitkul of the Fiscal Policy Office (FPO) emphasised the readiness, stating the measures aim to "maintain stability, enhance fundraising in the Stock Exchange of Thailand, and support investment in sustainable (ESG) stocks," offering tax relief for both new ThaiESGx investments and LTF transfers.

 

The SEC's Secretary-General, Pornanong Budsaratragool, affirmed their preparedness, saying the regulator has "expedited the revision of relevant regulations" to ensure a smooth launch for AMCs and has collaborated with industry partners to "facilitate LTF unitholders in checking all their LTF holdings" for seamless transfers.

 

Representing the asset management industry, Theeranat Rujimethapass of the AIMC confirmed that "19 AMCs are prepared to offer 37 funds" and that the industry is ready to support investors from the launch dates in May, aiming for a collective investment of "at least 20 billion baht in Thai ESGX funds."
  

The Stock Exchange of Thailand, according to Director and Manager Asadej Kongsiri, is "ready to provide LTF information to investors through its website," offering a consolidated view of holdings to aid transfer decisions. The SET also plans to expand these services to other tax-efficient funds in the future.

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AFP-JIJI PRESS NEWS JOURNAL


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