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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
2015, there were 42 DIPF members from security companies
(2014: 42 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,
theDIPFwill have assets worth no less thanBaht 100million, which
consists of initial capital of Baht 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 derivatives
trading regardless of who makes the investment decision.