20 July 2010

(Translation)

The Trust for Transactions in Capital Market Act
B.E. 2550 (2007)
_________

BHUMIBOL ADULYADEJ, REX.,
Given on the 30th Day of December B.E. 2550;
Being the 62nd Year of the Present Reign.

His Majesty King Bhumibol Adulyadej is graciously pleased to proclaim that:

Whereas it is expedient to enact a law on the trust for transactions in the capital market;

Whereas this Act contains certain provisions relating to the restriction of rights and liberties of persons, which Section 29, in conjunction with Section 32, Section 33, Section 41, and Section 43 of the Constitutions of the Kingdom of Thailand so permit by virtue of law;

Be it, therefore, enacted by His Majesty the King, by and with the advice and consent of the National Legislative Assembly, as follows:

SECTION 1 This Act shall be called the “the Trust for Transactions in Capital Market Act B.E. 2550.”

SECTION 2 This Act shall come into force after ninety days from the date of its publication in the Government Gazette, except Section 3, Section 4, Section 5, Section 6, Section 7, Section 8, Section 9, Section 54, Section 55, Section 56, Section 57, Section 77, and Section 78 which shall come into force on the day following the date of its publication in the Government Gazette.

SECTION 3 In this Act:
“trust” means legal relationship arising from a trust instrument

“trust instrument” means a contract whereby a person, called a settlor, transfers or creates real right or any right appertaining to property to or for another person, called a trustee, with trust and confidence in order that the trustee shall manage such property for the benefit of beneficiaries. This meaning includes a document showing the intention to create trust whereby a settlor and a trustee are the same person.

“trust property” means any property as specified in a trust instrument, including any property, interest, debt and liability arising from management of a trust in compliance with a trust instrument or this Act.

“SEC” means the Securities and Exchange Commission under the Securities and Exchange Act.

“SEC Office” means the Office of the Securities and Exchange Commission under the Securities and Exchange Act.

“competent officer” means any person appointed by the Minister to perform duties under this Act.

“Minister” means the Minister in charge of this Act.

SECTION 4 A trust may be created for the benefit of transactions in the capital market as specified in the notification of the SEC in relation to the following transactions:
(1) the issuance of securities under the Securities and Exchange Act;
(2) the securitization under the Royal Enactment on Special Purpose Juristic Persons for Securitization;
(3) other transactions which are supportive or beneficial to capital market development.

SECTION 5 The SEC and the SEC Office shall issue a notification to the general public stipulating the period for consideration and making of order with respect to the issuance of license and granting of approval under this Act.

SECTION 6 All rules, regulations, notifications, directives or stipulations issued under this Act by the SEC or the SEC Office which are of general application shall come into force upon their publication in the Government Gazette.

SECTION 7 The Minister of Finance shall be in charge of this Act and shall have the power to issue notifications and appoint competent officers to perform duties under this Act.

Such notifications shall come into force upon publication in the Government Gazette.

Chapter 1
Supervision of Trust for Transactions in Capital Market

SECTION 8 The SEC shall have the power and duty to formulate policies to promote, develop and supervise trust for transactions in the capital market. Such power and duty shall include:
(1) the issuance of rules, regulations, notifications, orders, directives or stipulations under this Act;
(2) the determination of application fees, approval fees or operating fees for business undertaking under this Act;
(3) the prescription of guidelines for consideration of any issues that may arise from the enforcement of this Act.

SECTION 9 The SEC Office shall have the power and duty to perform any act necessary for the implementation of the SEC’s resolutions and to perform any other acts under the provisions of this Act. Such power and duty shall include:
(1) the issuance of notifications or orders pursuant to this Act;
(2) the receipt of administrative fines imposed and fees charged under this Act;

All fines and fees received under subsection (2) shall be properties of the SEC Office.

SECTION 10 The SEC Office shall have the duty to disclose information relating to any violation and penalty imposed on the violators under this Act. The disclosure of any other information obtained in the performance of duties under this Act shall be in accordance with the rules specified in the notification of the SEC.

Chapter 2
Creation of Trust

Division 1
Trust Instrument

SECTION 11 A trust is created when a written contract is made and a settlor transfers property or creates real right or any right appertaining to property constituting trust property to or for a trustee.

In cases where a settlor makes a declaration to act in trusteeship, a trust shall be created where a written declaration to create the trust has been made and submitted to the SEC Office by the settlor, in accordance with the rules specified in the notification of the SEC.

SECTION 12 A settlor shall be any of the following juristic persons:
(1) company issuing securities under the Securities and Exchange Act;
(2) originator under the Royal Enactment on Special Purpose Juristic Persons for Securitization;
(3) juristic person having the qualifications specified in the notification of the SEC.

SECTION 13 A trust instrument shall not allow a settlor or a trustee to be a beneficiary unless there is another beneficiary or other beneficiaries, and the settlor or the trustee, by virtue of beneficiary, receives interest from the trust property not more than the proportion specified in the notification of the SEC.

In cases where the settlor or the trustee, by virtue of beneficiary, receives interest more than the proportion specified in the first paragraph, the interest shall be allocated to another beneficiary or other beneficiaries.

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This legislation has been prepared by staff members of the SEC Office. But is and unofficial translation authorized for reprint by the SEC Office.