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Derivatives Investor Protection Fund
In 2012 the board of directors of Thailand Futures
Exchange Public Company Limited (TFEX), a subsidiary,
has a resolution to establish the Derivatives Investor
Protection Fund (DIPF) and approved an appropriation
of Baht 50 million as an initial fund.
The DIPF was established on 15 November, 2012.
The objective of the DIPF is to provide protection for
derivatives contracts investors in accordance with the
rules prescribed by TFEX. Investors need to be protected
must become customers of DIPF members and is a
Thai natural person, a juristic person incorporated in
Thailand who is not an institutional investor under the
Derivatives Act B.E. 2546 (2003). As at 31 December,
2014, there were 42 DIPF members from security
companies (2013: 41 DIPF members).
Assets of the DIPF consist of the Company’s initial
capital, admission fees and contributions collected from
members of the DIPF, and yields or benefits obtained
from the proceeds and assets of the DIPF after the
deduction of expenses for the operation of the DIPF. At
the time of its establishment, the DIPF will have assets
worth no less than Baht 100 million, which consists of
initial capital of THB 50 million from the Company and
admission fees and contributions from DIPF members
in the rest to make the total of Baht 100 million. The
Company may collect additional sums of money as it
deems necessary and appropriate.
DIPF will protect the investors’ assets which are in
the custody of the securities brokers who are members
of the DIPF. In the event that the members of the DIPF
fail to return the assets to investors, each investor shall
be compensated by the DIPF for the related damages
at the actual cost, but not exceeding Baht 1 million
per DIPF member, in the following cases:
1) if any DIPF member is in receivership under
the Bankruptcy Act or
2) if there are disputes concerning the purchase
or sale of securities listed on the SET between investors
and any DIPF member, and the arbitrator’s award is that
the DIPF member shall return the assets to investors,
but the DIPF member violates the award.
The protection will not include any losses from
securities trading regardless of who makes the
investment decision.