Bangkok, 6 March 2020 – SEC has suspended an investment consultant for complex instruments named {A} and an investment consultant for complex instruments and investment planner named {B} for twelve months each, for failing to perform duties or giving services with loyalty. At the time of their misconduct, both were working for KGI Securities (Thailand) Public Company Limited.
Following investors’ complaints and SEC’s
further investigation, it was found that during 2013 – early 2015, a group of
persons opened a learning course on the topic of technical analysis and gave
advice on derivatives investment without approval through many channels such as
website, YouTube, email, phone, SMS and Line application. {A} and {B},
then investment consultants at KGI, cooperated with the group of persons above
in opening trading accounts for investors to make derivatives investments. They
executed trading orders in investors’ accounts, told investors to send trading
orders according to the advice of a member of the group of persons, and shared
benefits from the trading incentives with such member. Such acts caused damage
to several investors.
In this regard, SEC has filed a criminal
complaint with the Economic Crime Suppression Division against {A} and
{B} and the parties involved on account of being co-principals in operating
derivatives business without approval.
Due to their misconduct in this case, SEC
views that {A} and {B} both failed to perform duties or giving services
with loyalty.* SEC has therefore suspended the approval as investment
consultant for complex instruments type 1** for {A} for a period of 12
months, and the approval as investment consultant for complex instruments type
1 and investment planner for {B} for a period of 12 months***, starting
from 9 March 2020.
______________________
Notes:
* Pursuant to 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.
**
An
investment consultant for complex instruments type 1 is allowed to give advice
to investors about capital market products without complex features and
products with high risks or complexity of all types. Ex., investment units of
mutual funds for institutional investors or ultra-high net worth investors,
investment units of mutual funds investing in derivatives, hybrid products,
structured notes and derivatives.
*** Since the approval period as investment consultant for
complex instruments type 1 for {A} and {B} and the approval period as
investment planner for {B} will expire on 31 December 2020, SEC has
therefore suspended their approvals, from the effective date of the sanction
until the expiry date of their respective approvals, and will not accept their
future application for approval as personnel in the capital market business for
the remaining period of the 12-month suspension.