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SEC suspends investment consultant for making decisions to trade securities for investor



Tuesday 29 January 2019 | No. 9 / 2019


Bangkok, 29 January 2019 - The SEC has suspended approval for {A} as a capital market investment consultant for a period of three months and 22 days on the ground that she accepted an investor's assignment to make investment decisions for the investor.

Following a client complaint, the SEC made further investigation and found that during September 2017 - February 2018, {A}, then working for Asia Wealth Securities Company Limited, had made trading orders before informing the client who did not make any objection and made payments for the trading transactions. The trading activities involved shares and derivative warrants of 90 companies, amounting to the total trading value of approximately 130 million baht.

By accepting a client's assignment to make investment decisions for the client, {A} failed to perform duty with responsibility and deliberation as a professional. Her misconduct was in violation of the Notification of the Capital Market Supervisory Board*. The SEC therefore suspended her approval as capital market personnel for a period of three months and 22 days. In this regard, Asia Wealth has already suspended her from work for six months. As a result, the SEC's suspension is deemed to have been served.

Investors are strongly advised to be careful and not to allow investment consultants to make trading decisions for them. Compliance unit should be immediately informed if a trading account is used without the account owner's knowledge to prevent potential damage. Recently, the SEC has punished offenders who caused damage to investors in several cases. In any event that an investor truly wishes to have a person make trading orders on his or her behalf, the investor must issue a written power of attorney and should examine the trading confirmation documents regularly.

_____________________________

* Clause 23(2) and deemed to be the prohibited characteristics of personnel in the capital market business 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, as amended by  the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560 Re: Rules on Personnel in the Capital Market Business (No. 7) dated 30 August 2017.












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. 9 / 2019 Tuesday 29 January 2019
SEC suspends investment consultant for making decisions to trade securities for investor

Bangkok, 29 January 2019 - The SEC has suspended approval for {A} as a capital market investment consultant for a period of three months and 22 days on the ground that she accepted an investor's assignment to make investment decisions for the investor.

Following a client complaint, the SEC made further investigation and found that during September 2017 - February 2018, {A}, then working for Asia Wealth Securities Company Limited, had made trading orders before informing the client who did not make any objection and made payments for the trading transactions. The trading activities involved shares and derivative warrants of 90 companies, amounting to the total trading value of approximately 130 million baht.

By accepting a client's assignment to make investment decisions for the client, {A} failed to perform duty with responsibility and deliberation as a professional. Her misconduct was in violation of the Notification of the Capital Market Supervisory Board*. The SEC therefore suspended her approval as capital market personnel for a period of three months and 22 days. In this regard, Asia Wealth has already suspended her from work for six months. As a result, the SEC's suspension is deemed to have been served.

Investors are strongly advised to be careful and not to allow investment consultants to make trading decisions for them. Compliance unit should be immediately informed if a trading account is used without the account owner's knowledge to prevent potential damage. Recently, the SEC has punished offenders who caused damage to investors in several cases. In any event that an investor truly wishes to have a person make trading orders on his or her behalf, the investor must issue a written power of attorney and should examine the trading confirmation documents regularly.

_____________________________

* Clause 23(2) and deemed to be the prohibited characteristics of personnel in the capital market business 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, as amended by  the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560 Re: Rules on Personnel in the Capital Market Business (No. 7) dated 30 August 2017.