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SEC penalizes an investment consultant for wrongful acts against investors’ assets



Thursday 19 March 2020 | No. 60 / 2020


Bangkok, 19 March 2020 – SEC has penalized a securities investment consultant named Miss Nuchanart Kumlangsup for committing wrongful acts against investors’ assets, causing her to have prohibited characteristics of personnel in the capital market business. Due to her possession of such characteristics, her future application for approval as personnel in the capital market business will be banned for 10 years. At the time of her misconduct, she was working for TMB Bank Public Company Limited (TMB).

Following a TMB report on clients’ complaints and SEC’s further investigation, it was found that during 27 July 2015 – 5 June 2017 Nuchanart (1) withdrew money from her clients’ bank accounts without using the money to buy investment units as per the clients’ orders, (2) bought investment units less than the amount ordered, (3) misappropriated her clients’ money by depositing it into her own account or the accounts of other parties involved as well as depositing certain amounts back into the accounts of other clients who had been her fraud targets earlier, and (4) counterfeited withdrawal forms and depositor signatures of her clients. Nuchanart later confessed to TMB in writing that she had committed frauds against her clients’ assets and had sought undue benefits for herself at an approximate amount of 8.5 million baht.

TMB has terminated her employment without granting a compensation. The bank has also taken legal action on the case and paid compensation for the damage to every affected client.

 

Nuchanart’s demeanors above were wrongful acts against investors, which were deemed failure to perform duties or give services with loyalty in accordance with the Notification of the Capital Market Supervisory Board.* SEC has therefore revoked the approval and will not accept her future application for approval as personnel in the capital market business for a period of 10 years, effective from 17 March 2020. 

Investors are strongly advised to thoroughly check and make sure that the evidence of all transaction records, both buy and sell sides, is genuinely issued by the banks or the asset management companies in charge, and to update their fund books (if any) regularly to prevent possible damage from frauds.


______________________

 

* Clause 23(1) and 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.   












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No. 60 / 2020 Thursday 19 March 2020
SEC penalizes an investment consultant for wrongful acts against investors’ assets
Bangkok, 19 March 2020 – SEC has penalized a securities investment consultant named Miss Nuchanart Kumlangsup for committing wrongful acts against investors’ assets, causing her to have prohibited characteristics of personnel in the capital market business. Due to her possession of such characteristics, her future application for approval as personnel in the capital market business will be banned for 10 years. At the time of her misconduct, she was working for TMB Bank Public Company Limited (TMB).

Following a TMB report on clients’ complaints and SEC’s further investigation, it was found that during 27 July 2015 – 5 June 2017 Nuchanart (1) withdrew money from her clients’ bank accounts without using the money to buy investment units as per the clients’ orders, (2) bought investment units less than the amount ordered, (3) misappropriated her clients’ money by depositing it into her own account or the accounts of other parties involved as well as depositing certain amounts back into the accounts of other clients who had been her fraud targets earlier, and (4) counterfeited withdrawal forms and depositor signatures of her clients. Nuchanart later confessed to TMB in writing that she had committed frauds against her clients’ assets and had sought undue benefits for herself at an approximate amount of 8.5 million baht.

TMB has terminated her employment without granting a compensation. The bank has also taken legal action on the case and paid compensation for the damage to every affected client.

 

Nuchanart’s demeanors above were wrongful acts against investors, which were deemed failure to perform duties or give services with loyalty in accordance with the Notification of the Capital Market Supervisory Board.* SEC has therefore revoked the approval and will not accept her future application for approval as personnel in the capital market business for a period of 10 years, effective from 17 March 2020. 

Investors are strongly advised to thoroughly check and make sure that the evidence of all transaction records, both buy and sell sides, is genuinely issued by the banks or the asset management companies in charge, and to update their fund books (if any) regularly to prevent possible damage from frauds.


______________________

 

* Clause 23(1) and 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.