Legal measures relating to supervision and roles of hedge fund manager in Thailand

Abstract

The objective of this thesis was to study supervision and roles of hedge fund managers from foreign law in order to ensure appropriate perceptions of their responsibilities and help sustain growth in the Thai financial system. The researcher examined the relevant laws in three foreign nations including the United States (US), United Kingdom (UK), and South Korea to compare the legal development of hedge fund managers. The results found that the supervision of hedge fund managers developed from the beginning. Additionally, a hedge fund manager’s role falls into the same category as a mutual fund manager, which means it involves similar regulatory oversight. Moreover, a hedge fund manager may commit fraud against investors or get involved in situations where conflict of interest may affect the interests of investors. Unfortunately, there are no regulations for hedge fund managers in Thailand. However, both hedge fund managers and mutual fund managers have similarities in the substance of their roles. As such, both should be regulated similarly in term of regulatory oversight. Once the activities of hedge fund managers are regulated, they are obligated to comply with certain rules designed to protect investors as well as the public interest. Hence, it is necessary to adopt and adjust some legal measures concerning securities regulation, fund management licensing and investor qualifications for a hedge fund manager to support the growth of the hedge fund industry in Asia and protect Thai investors.