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SEC penalizes an investment consultant for 5 years due to duty performance without loyalty, causing damage to clients



Monday 24 February 2020 | No. 32 / 2020


Bangkok, 24 February 2020 – SEC has penalized an investment consultant named Mr. Chalermwut Sonoup for failing to perform duties or giving services with loyalty and consequently causing damage to clients. His misconduct caused him to have prohibited characteristics of personnel in the capital market business. As a result, he is banned from re-entering the capital market business for 5 years. At the time of his misconduct, he was working for AIA Co., Ltd.

Following an AIA report on clients’ complaints and SEC’s further investigation, it was found that Chalermwut had misappropriated the money received from two clients to pay for their annual premium of unit-linked insurance policies. He did not deliver the money to the company and spent the money for his own interest instead. As a result, the clients’ insurance policies and the protection coverage lapsed.  

Chalermwut’s wrongful acts against investors’ assets were liable to failure to perform duties or provide services with loyalty in accordance with the Notification of the Capital Market Supervisory Board.* Therefore, SEC will not accept his future application for approval as personnel in the capital market business for a period of five years, effective from 25 February 2020.  

Investors are strongly advised to thoroughly check and make sure that all receipts or evidence of payment are issued by the companies in charge. In case of making an agreement to buy an investment product outside the premises of a service provider, investors should not pay in cash and should transfer the payment directly to the account of the service provider to prevent possible damage from frauds. 

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* 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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