The Securities and Exchange Commission (SEC) is considering a reduction in the number of applicants permitted to apply for a securities business licence in a bid to lower regulatory costs as part of the regulatory reform process.
According to the World Bank, regulatory costs account for 10-25% of GDP in each country. The high rate is seen as a risk to the long-term economic growth outlook.
There are a total of 250 securities licences at present, according to the SEC.
SEC senior assistant secretary-general Waratchya Srimachand said the number of regulations and regulators has increased with the rise of new businesses and technology.
Excessive red tape will harm Thailand's economic growth prospects in the long run, Mrs Waratchya said.
The SEC normally takes three months to approve a licence. During the approval process, a company could miss a business opportunity and shoulder high interest costs, while the market regulator could also incur higher costs in terms of hiring, inspection tools and other regulatory procedures, Mrs Waratchya said.
But regulations on corporate governance are necessary to protect investors and clients, she said, while other related regulations, such as court procedures, are required for judgement and impartiality.
Regulations that foster business growth are the SEC's main goal as it aims to serve the needs of investors and other market participants, Mrs Waratchya said.
The SEC will continue its reform by reviewing all existing rules and regulations and inviting market experts to join in the planning, especially on applying for securities licences, Mrs Waratchya said, adding that the process is expected to be completed next year.
The securities regulator hopes to resolve regulatory cases more directly and incorporate new technological tools to boost market competitiveness and reduce the private sector's operating costs.
"By implementing the rules and regulations and maintaining law enforcement efficiency, the SEC needs to have good corporate governance in order to maintain its credibility and market confidence," Mrs Waratchya said.
