The Office of Insurance Commission (OIC) has published the draft notifications on applying for corporate brokerage licenses, the Notifications re: Criteria and Conditions on the Issuance and Renewal of License for Corporate Brokers. These draft notifications are expected to come into effect on 1 January 2020 and will replace the existing notifications.
Most of the key requirements under the current corporate brokerage license notifications will also be enforced under the new notifications; however, some key changes are introduced:
- qualifications for corporate brokers' directors will be prescribed in addition to the qualifications of the persons authorized to manage the brokerage business;
- higher minimum capital requirement of THB 3 million (from THB 2 million);
- asset maintenance requirement will be revised;
- requirement to include and notify global positioning system (GPS) location of the offices; and
- requirement to disclose the audited financial statements on their website, at their offices, or on other channels as prescribed by the OIC.
Corporate brokers which have procured their licenses before the effective date of these notifications will be deemed compliant. However, they should still familiarize themselves with the requirements under these draft notifications to ensure compliance when renewing the licenses. New license applications will be subject to the new notifications.