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SEC suspends five investment consultants and bans three of them from performing duties as branch manager



Monday 11 September 2017 | No. 83 / 2017


Bangkok, 11 September 2017 - The SEC has suspended the approval of five securities investment consultants for failing to perform duties in compliance with professional standards. The suspended persons are: (1) {A}, (2) {B}, (3) {C}, (4) {D}, and (5) {E}.

The SEC has also banned the persons in (2) - (4) from performing duties as a branch manager in a business related to capital market. All of the investment consultants above work for the KASIKORNBANK Public Company Limited (KBANK).

In the cases of (1) and (2), {A} affixed her signature as the investment consultant for a person who was not her client while in fact the person had received investment advice from another Kasikornthai employee who was not an approved investment consultant. {B}, the manager of the branch where the client received investment advice, was negligent in supervising work control and compliance at the branch, which consequently led to inappropriate investment as far as the client's demand and risk profile were concerned. The SEC has imposed a 40-day-suspension on {A} as a securities investment consultant, and a two-month suspension on {B} as a securities investment consultant and investment planner. In addition, {B} was banned from performing duties as a branch manager for any business related to capital market. Both cases took effect on 30 May 2017.

In the case of (3), {C} advised a client to invest in a trigger fund without fully explaining the fund's features nor giving the fund fact sheet to the client for self-study. The client misunderstood that the trigger fund was a fix-income fund similar to the product of the client's previous investment. The trigger fund later incurred loss to the client. The SEC has suspended {C} as a securities investment consultant and banned her from performing duties as a branch manager for any business related to capital market for two months, effective since 25 August 2017.

In the case of (4), {D} used the money a client received from a fund that had reached maturity to buy units of a mutual fund without authorization from the client. She did not clarify the details of the new fund and failed to assess the client's risk tolerance before giving investment advice, causing inappropriate investment for the client. The SEC has therefore suspended {D} as a securities investment consultant and investment planner, and banned her from performing duties as a branch manager for any bank that undertakes business related to capital market for four months, effective since 4 September 2017.

In the case of (5), {E} advised a client to open a mutual fund trading accounting instead of a fixed deposit account the client preferred. In so doing, {E} did not contact nor inquire the client's demand directly even though it was possible to do so. Instead, she asked an employee who was not an approved investment consultant to take the said action. This led to an incomplete client analysis and inappropriate investment inconsistent with the client's demand and acceptable risk level. The SEC has suspended {E} as a securities investment consultant for two months, effective since?12 September 2017.

In handling these cases, the SEC received KBANK's cooperation in reporting the relevant complaints and information on the misconduct of the five investment consultants.

Investors are strongly advised to exercise discretion in making investment decisions and should be aware that fund products come with different risks and returns depending on different factors, terms and conditions. It is important to seek details of the funds to be invested from selling agents as well as request and study the fund fact sheets carefully before making an investment decision. In any case, the execution of a unit buy/sell transaction by any person other than the account owner must be authorized in writing in advance.??

_______________________________


Note: The misconduct of the five investment consultants were in violation of Clause 23(2) and 23(3), and liable to the prohibited characteristics of personnel in the capital market under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014. The misconduct of {B} was a prohibited characteristic under Clause 31(4) of the same Notification.












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No. 83 / 2017 Monday 11 September 2017
SEC suspends five investment consultants and bans three of them from performing duties as branch manager

Bangkok, 11 September 2017 - The SEC has suspended the approval of five securities investment consultants for failing to perform duties in compliance with professional standards. The suspended persons are: (1) {A}, (2) {B}, (3) {C}, (4) {D}, and (5) {E}.

The SEC has also banned the persons in (2) - (4) from performing duties as a branch manager in a business related to capital market. All of the investment consultants above work for the KASIKORNBANK Public Company Limited (KBANK).

In the cases of (1) and (2), {A} affixed her signature as the investment consultant for a person who was not her client while in fact the person had received investment advice from another Kasikornthai employee who was not an approved investment consultant. {B}, the manager of the branch where the client received investment advice, was negligent in supervising work control and compliance at the branch, which consequently led to inappropriate investment as far as the client's demand and risk profile were concerned. The SEC has imposed a 40-day-suspension on {A} as a securities investment consultant, and a two-month suspension on {B} as a securities investment consultant and investment planner. In addition, {B} was banned from performing duties as a branch manager for any business related to capital market. Both cases took effect on 30 May 2017.

In the case of (3), {C} advised a client to invest in a trigger fund without fully explaining the fund's features nor giving the fund fact sheet to the client for self-study. The client misunderstood that the trigger fund was a fix-income fund similar to the product of the client's previous investment. The trigger fund later incurred loss to the client. The SEC has suspended {C} as a securities investment consultant and banned her from performing duties as a branch manager for any business related to capital market for two months, effective since 25 August 2017.

In the case of (4), {D} used the money a client received from a fund that had reached maturity to buy units of a mutual fund without authorization from the client. She did not clarify the details of the new fund and failed to assess the client's risk tolerance before giving investment advice, causing inappropriate investment for the client. The SEC has therefore suspended {D} as a securities investment consultant and investment planner, and banned her from performing duties as a branch manager for any bank that undertakes business related to capital market for four months, effective since 4 September 2017.

In the case of (5), {E} advised a client to open a mutual fund trading accounting instead of a fixed deposit account the client preferred. In so doing, {E} did not contact nor inquire the client's demand directly even though it was possible to do so. Instead, she asked an employee who was not an approved investment consultant to take the said action. This led to an incomplete client analysis and inappropriate investment inconsistent with the client's demand and acceptable risk level. The SEC has suspended {E} as a securities investment consultant for two months, effective since?12 September 2017.

In handling these cases, the SEC received KBANK's cooperation in reporting the relevant complaints and information on the misconduct of the five investment consultants.

Investors are strongly advised to exercise discretion in making investment decisions and should be aware that fund products come with different risks and returns depending on different factors, terms and conditions. It is important to seek details of the funds to be invested from selling agents as well as request and study the fund fact sheets carefully before making an investment decision. In any case, the execution of a unit buy/sell transaction by any person other than the account owner must be authorized in writing in advance.??

_______________________________


Note: The misconduct of the five investment consultants were in violation of Clause 23(2) and 23(3), and liable to the prohibited characteristics of personnel in the capital market under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014. The misconduct of {B} was a prohibited characteristic under Clause 31(4) of the same Notification.