ting financial hardship. In addition, there must be no reasonable grounds to believe the applicant has any deficiency or is not appropriate in regard to control and sound business conduct.
d) Be able to demonstrate that the persons who are, or will, become directors, manager, or persons with management authority of the crowdfunding portal business do not have any prohibited characteristics as specified in the Notification of the Capital Market Supervisory Board concerning Rules on Personnel in the Capital Market Business.
e) Have installed systems that are ready to operate the crowdfunding portal business, as prescribed.
f) If the applicant is a company that has operated other businesses previously, the applicant’s other businesses must be related, beneficial, or supportive to undertaking the crowdfunding portal business, and must not have potential conflicts of interest with the crowdfunding portal business, except where the applicant is able to demonstrate that there shall be an effective system to prevent such a conflict.
The fee for the application for approval is THB 250,000 (approx. USD 7,450) per application. THB 50,000 must be paid on the application filing date, and the remaining THB 200,000 is due on the date of approval.
A crowdfunding portal must comply with the business conduct prescribed by the SEC Office on (a) general business conduct; (b) management structure, operating system, and personnel; (c) advertisement and promotional activities; (d) acceptance, communication, and provision of services to members; (e) compilation and assessment of member information; (f) conduct in providing services to members; and (g) criteria and period for report filing.
Lending-based Crowdfunding (Crowdlending)
On 31 July 2020, the BOT issued Notification 14/2563 Re: The Determination of Rules, Procedures, and Conditions for Peer-to-Peer Lending Businesses and Platforms. The notification provides a number of parameters within which peer-to-peer (P2P) lending platform providers and P2P lenders must operate. It defines a P2P platform provider as a person who provides an electronic system or network for P2P lending, and a lender as a natural or juristic person who offers a loan through an electronic system or network (excluding crowdfunding providers). Key provisions of the notification are below.
P2P Platform Provider
The BOT has stipulated that a P2P platform provider, its majority shareholders, directors, and management personnel of the parent company of platform provider must be qualified and must not have any of the prohibited characteristics stipulated in the Ministry of Finance Re: Business Subject to Approval According to Section 5 of the Revolutionary Council Decree No. 58 Re: Peer-to-Peer Lending Businesses and Platforms. Any financial services providers looking to provide a P2P lending platform must first be part of the BOT’s regulatory sandbox before applying for a licence from the BOT.
The application for approval to be a P2P platform operator can be done via the BOT’s online system, with no government fees.
Credit Limits
The notification also prescribes credit limits for obtaining loans, depending on the type of loan. For example, a loan for consumer purposes is subject to the same criteria as a personal loan. If the loan is for business purposes, the credit limit is set at THB 50 million (approx. USD 1,460,000).
Lenders
Lenders must possess knowledge and understanding of loans and the risks associated with P2P lending platforms by conducting client suitability assessments before providing loans. Additionally, a lender must not be a platform provider. The credit limit for individual lenders is THB 500,000 (approx. USD 14,600) within one (1) year.
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