Sign In
SEC News
SEC suspends a securities investment consultant



Friday 20 February 2015 | No. 17 / 2015



Bangkok, February 20, 2015 - The SEC suspended {A}, a securities investment consultant of Siam Commercial Bank Plc. (SCB), for failure to provide complete information or advice. In this case, he failed to inform a client of material information that was likely to affect investor's interests.

Following the SCB report, the SEC probed into the case and found that a client wanted to sell investment units of long-term equity fund (LTF) bought in 2013 in order to invest in another fund. After reviewing the LTF investment account of such client, {A} informed the client that selling LTF investment units prior to the specified period will be subject to tax penalty. The client insisted on selling those units, reasoning that he did not claim LTF tax benefits from this portion. {A}, however, did not inform the client of FIFO criteria applied by the Revenue Department.  Accordingly, instead of the LTF investment units purchased in 2013, the selling order resulted in deduction of the units purchased two years ago which was non-compliance with the conditions on LTF tax benefits. The client was subject to retroactive tax payment plus surcharges.

Failure to provide complete information or advice by not revealing or informing material information likely to affect investor?s interests was in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended {A} from his duty as the approved securities investment consultant for one month, effective from February 23, 2015.

---------------
* Clause 20(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012 which was prohibited characteristics of personnel in the capital market business under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 re: Prohibitions for Personnel of Business Operators dated September 15, 2010. The actions were in violation of Clause 23(2) and the prohibited characteristics of the personnel in the capital market business under Clause 31(1) of the Notification of Capital Market Supervisory Board No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014 which has been promulgated in replacement of the said two notifications.

 












Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 17 / 2015 Friday 20 February 2015
SEC suspends a securities investment consultant


Bangkok, February 20, 2015 - The SEC suspended {A}, a securities investment consultant of Siam Commercial Bank Plc. (SCB), for failure to provide complete information or advice. In this case, he failed to inform a client of material information that was likely to affect investor's interests.

Following the SCB report, the SEC probed into the case and found that a client wanted to sell investment units of long-term equity fund (LTF) bought in 2013 in order to invest in another fund. After reviewing the LTF investment account of such client, {A} informed the client that selling LTF investment units prior to the specified period will be subject to tax penalty. The client insisted on selling those units, reasoning that he did not claim LTF tax benefits from this portion. {A}, however, did not inform the client of FIFO criteria applied by the Revenue Department.  Accordingly, instead of the LTF investment units purchased in 2013, the selling order resulted in deduction of the units purchased two years ago which was non-compliance with the conditions on LTF tax benefits. The client was subject to retroactive tax payment plus surcharges.

Failure to provide complete information or advice by not revealing or informing material information likely to affect investor?s interests was in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended {A} from his duty as the approved securities investment consultant for one month, effective from February 23, 2015.

---------------
* Clause 20(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012 which was prohibited characteristics of personnel in the capital market business under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 re: Prohibitions for Personnel of Business Operators dated September 15, 2010. The actions were in violation of Clause 23(2) and the prohibited characteristics of the personnel in the capital market business under Clause 31(1) of the Notification of Capital Market Supervisory Board No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014 which has been promulgated in replacement of the said two notifications.