Bangkok, July 8, 2015 - The SEC suspended three investment consultants for making trading decisions on the clients' behalf. Those investment consultants were {A}, a former capital market investment consultant of Krungsri Securities Public Company Limited (Krungsri Securities) and Apple Wealth Securities Public Company Limited as well as {B}, a securities investment consultant and {C}, a capital market investment consultant of Krungsri Securities. In addition, the SEC suspended {D}, a former capital market investment consultant of Krungsri Securities, for failure to perform her duty in compliance with the company?s rules.

From an inspection report of Krungsri Securities, the SEC further probed into the case and found that {A}, {B} and {C} made securities trading decisions on the clients? behalf. The recorded conversation indicated that {A} and {B} specified securities, amount and price for their clients and the clients accepted their trading decisions without objection or asking for any information of those securities. In addition, it was found that a client of {B} asked her to make trading decision on his behalf while {C} submitted the client's securities trading orders via the internet from the IP address of Krungsri Securities for a certain period of time. {C} admitted and explained that her client was not keen on investment and asked her to take care of the trading account.

{D} failed to perform her duty in compliance with the company's rules as she, by the clients? decision, submitted a number of securities and derivatives trading orders via the internet from the IP address of Krungsri Securities. Those orders were submitted for a certain period of time. 

The actions of {A}, {B} and {C} that made trading decisions on the clients? behalf were misconduct while {D}'s action was failure to perform her duty in compliance with the company's rules*. The SEC, therefore, sanctioned the said four persons by suspending the approval and set the period of acceptance of their re-applications**.

In this regard, the SEC warns investment consultants not to submit trading orders on the client's behalf even the client allows to take care of his/ her securities trading account. The investment consultants must perform with their securities companies? rules strictly and do not meddle with the client's assets and trading account or submit trading order via the internet with the IP address of securities firm. 
 
**Details of sanctions are as follows:
1. Suspended {A} from his duty as the approved capital market investment consultant for 11 months. Owing to the fact that the approval period remains until December 31, 2015, the approval shall be suspended until the lapse of such period and his re-application for approval as the capital market personnel will be accepted after 11 months as from July 9, 2015.
2. Suspended {B} from her duty as the approved securities investment consultant for 1 month, effective from July 9, 2015.
3. Suspended {C} from her duty as the approved capital market investment consultant for 2 months, effective from July 9, 2015.
4. Suspended {D} from her duty as the approved capital market investment consultant for 3 months. Having considered that she had already been suspended by of Krungsri Securities for 1 month, the suspension imposed by the SEC shall remain 2 months, effective from July 9, 2015.

* Making trading decision on the client's behalf and failure to perform duty in compliance with the company's rules were deemed as a violation of Clause 14(2) of the SEC Office Notification No. SorKhor.49/2552 Re: Approval for Investor Contacts and Standards of Conduct dated October 14, 2009 and 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 and Clause 23(2) of the Notification No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014. In addition, failure to comply with Clause 14(2) of the Notification No. SorKhor.49/2552 and Clause 20(2) of the Notification No. TorLorThor. 3/2555 was the 3rd category of prohibited characteristics of the capital market business personnel under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor.37/2553 Re: Prohibited Characteristics of the capital market business personnel dated September 15, 2010. Such failure was a violation of Clause 23(2) and the 3rd category of prohibited characteristics of the capital market business personnel under Clause 31(1) of the Notification No. TorLorThor. 8/2557 which has been promulgated in replacement of the said three notifications.