The country introduced two ministerial regulations aimed at reducing licensing requirements for certain foreign derivatives-related activities and securities-related support services.
Certain foreign businesses in Thailand, including a range of derivatives and securities related activities, can conduct without requiring permission under the Foreign Business Act (FBA), according to two ministerial regulations published in the Royal Thai Government Gazette on 28 August 2026.
The regulations expand the exemptions applying to derivatives dealers, advisers and fund managers
The regulations expand the exemptions applying to derivatives dealers, advisers and fund managers.
The new guidelines issued by Minister of Commerce, which apply to brokers and agents, clarifies two newly added categories of businesses that are treated as exempt businesses under FBA.
One category covers agents facilitating futures trading where the underlying assets or variables are not within the defined scope of Thailand's derivatives legislation, while the other covers transactions conducted outside a derivatives exchange, where payments are calculated by reference to foreign exchange rates or interest rates.
According to the circular, the government considers these activities beyond the restricted service sectors that the FBA seeks to protect, making a foreign business license unnecessary.
However, instead of a wholesale deregulation of derivatives or securities activity, the exemption applies to FBA licensing only. Other Thai regulatory requirements under the relevant sector-specific laws may still apply.
The measures lower barriers to entry for foreign firms engaging in certain derivatives-related brokerage activities and may encourage greater participation in Thailand's derivatives market.
The other regulation expands the range of activities that are exempt from requirements to obtain a foreign business license. Key additions include loans for the purchase of securities and securities repurchase transactions. The regulation also clarifies that various futures-related activities, including brokerage, dealing, advisory, fund management, activities relating to commodities or underlying assets not governed by futures law, and exchange rates, currencies, interest rates involved transactions, fall within the exempt categories.
In addition, the regulation exempts a number of operational support functions that are not regarded as core securities or derivatives activities, including services relating to telecommunications, fund administration, HR and IT to support affiliated entities, overseas affiliates support, office space for financial-service equipment and automated devices as well as petroleum contract administration.
The changes are aimed at reducing compliance burdens for financial institutions and corporate groups by allowing a wider range of support services to be conducted without a foreign business license as well as support greater use of foreign structuring and distribution capabilities in Thailand if firms previously faced FBA licensing requirements for relevant activities.
This may create more scope for international banks and other derivatives businesses to offer or facilitate structured products, particularly those with FX or interest-rate underlyings, but the regulations do not themselves remove any product-specific approval, licensing or conduct requirements under Thailand's securities and derivatives framework.
Click in the link to read the brokerage and agency regulation and service-business regulation (in Thai).
Image: Maman/Adobe Stock
Do you have a confidential story, tip or comment you’d like to share? Contact Us | SRP (structuredretailproducts.com)