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FeTCO members (The Association of Securities Companies, the Listed Companies Association, the Securities Analysts Association, the Association of Investment Management Companies, and the Thai Investors Association) have each suggested approaches to upgrade the disclosure of accurate, timely and useful information to investors and to further develop personnel in the securities industry. The personnel development plan covers business owners, securities analysts, investment management companies’ staffs as well as investors.
Mr. Chanin Vongkusolkit, Acting Chairman of the Listed Companies Association, said that the Association has proposed all agencies involved in the capital markets, including the Securities and Exchange Commission (SEC) work more closely together before introducing any new regulations. This closer collaboration will permit all useful suggestions related to the new rules to be heard and thus help make for more effective implementation of the new rules.
Furthermore, the Listed Companies Association also proposed that the tax rates for juristic persons be decreased from 30% to 25%, because listed companies have been carrying higher-than-usual operating expenses. It also suggested that listed companies currently undergoing rehabilitation should be invited to take part in the rating of their corporate governance practices and be eligible to receive awards.
Meanwhile, Dr. Kongkiat Opaswongkarn, Chairman of the Securities Analysts Association, proposed improving securities analysis presentations by upgrading the quality of securities analysts. Dr. Kongkiat suggested that the move can be achieved by finding 450 new qualified analysts in 2005. He emphasized that both the analysts and the investors must be multi-dimensional and must seek out more information. Analysts should serve as decent role models when commenting on securities via any of the media.
He also stressed that the qualifications of securities analysts who communicate through the media must, themselves, remain transparent, and they must not hold shares in any securities they comment on.
In addition, he also asked the listed firms to meet more analysts so that the company’s information presentation, as well as the resulting analyses would become more accurate. Analysts are also asked to take more responsibility in their work, as this will lead to creating a better image for their profession as a whole.
At the same time, the Securities Analysts Association will prepare analysis reports and follow-ups on related information to help facilitate understanding of the economic data to be used in its monthly investment analyses for the public. The better education of investors will be accomplished through the use of newspaper articles, with all 4 associations in the capital markets and the SET responsible for all the expenses.
Dr. Kongkiat added that good relations with investors and the general public is crucial and all listed companies should pay greater attention to these relationships by hiring helpful and knowledgeable personnel to be responsible for the dissemination of the company’s information. Companies should not fill these important positions by the mere rotation of its human resources.
Meanwhile, Mr.Suthep Peetakanont, Chairman of the Association of Securities Companies (ASCO), said that the Association has assumed a role in several social activities during the past year, utilizing more than THB100 million in funding from listed companies. This move towards active participation in the community can be considered a new role for the Association in the eyes of the public.
The roles being assumed by ASCO in developing capital markets in 2005 will focus on services, personnel and products. One area expected to receive special attention is the research and development of securities trading on the Internet, which is a continuation of last year’s efforts. In addition, there will be greater information-based development of the releases of securities analysis reports during any IPOs. This will take place with the cooperation of the Investment Banking Club and the Compliance Club. Also, the Association has agreed with the Listed Companies Association that it should take on a greater role in the adjustments of any regulations.
Mr. Adisorn Sermchaiwong, Chairman of the Association of Investment Management Companies, announced that his Association’s role in developing the capital markets will focus more on the development of new markets, ranging from bonds to derivatives instruments and on the Market for Alternative Investments (mai). The AIMC already planned to apply for licenses to invest in these markets and to provide support for the projects to expand the investor base, e.g., publishing the “Ngern-Thong Khong-Mee-Ka” (Making Sense of Money) manual, which will be distributed to at least 10 schools this year. In addition, it will also join SET roadshows to help promote the establishment of savers’ base in the provinces using the theme “Open Market for Savings”.
For the Thai Investors Association, Mr. Sansern Nilrat said that the Association will pursue its mission, which is using the theme “Education to Assure Protection and Conquer Investments”. The Association will play more roles in educating the public through various regularly-held activities for both Thailand’s youth and the country’s investors. The Association will also visit listed companies. What is more, the Association has already been in touch with the ASCO to work together in compiling information on listed companies’ clients for the shareholders’ benefit.
The Thai Investors Association has also pursued its aim to protect the rights of shareholders by sending representatives to ask questions during shareholders’ meetings of listed companies. Finally, the Association has urged for more allocations of shares for investors, the better dissemination of clearer and more transparent information through the use of all the media as well as the continued education of investors on new products.
