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SEC Updates Rules to Boost Flexibility in Compensating Mutual Funds or Investors for Pricing Errors – Effective 1 Feb 2026

GenevaTimes by GenevaTimes
January 7, 2026
in Business
Reading Time: 2 mins read
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SEC Updates Rules to Boost Flexibility in Compensating Mutual Funds or Investors for Pricing Errors – Effective 1 Feb 2026
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The SEC amended regulations for asset management companies, allowing them to compensate investors for incorrect pricing by using their funds and exceeding actual losses, effective February 1, 2026.


Bangkok, 6 January 2026 – The Securities and Exchange Commission (SEC) has
amended the regulations governing the operations of asset management companies
(AMCs) in cases where investment unit values or prices are calculated incorrectly
(“incorrect pricing”). Under the revised rules, AMCs can choose to provide monetary
compensation to the mutual fund or investors, in addition to reducing the
number of investment units held by those who received excess benefits. Moreover,
AMCs are permitted to compensate in amounts exceeding the actual loss incurred.
These changes aim to give AMCs greater flexibility in managing mutual funds
while ensuring that investors remain properly protected and retain all rightful
benefits.

The SEC held a public hearing in Q3 2025 regarding proposed principles and a draft notification on asset management companies’ operations in cases of incorrect pricing. All respondents expressed their support for the proposal. As a result, the SEC has revised the regulations with the following key points:

(1) AMCs may choose to use their own funds to compensate the affected mutual fund, providing an alternative to reducing the investment units held by buyers or sellers who received excess benefits.

(2)  Greater Flexibility in Compensation Amounts – AMCs are allowed to compensate mutual funds or affected investors with amounts exceeding the actual losses incurred, taking into account factors like opportunity costs.

The revised regulations* have been published
in the Government Gazette and will take effect from 1 February 2026 onward.

Source : SEC Revises Regulations to Enhance Flexibility for Asset Management Companies in Compensating Mutual Funds or Investors in Cases of Incorrect Pricing – Effective 1 February 2026

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