According to Bangkok Bank’s complaint report and SEC’s further investigation, it was found that during 22 September 2017 – 24 February 2018, {A}, then a securities investment consultant at the bank, committed wrongful acts against the investor’s assets by using the investor’s subscription money for mutual fund investments for her own interest without executing the subscription transactions as originally intended by the investor. In so doing, she made and sent false documents to the investor to lure the investor into believing that the subscription transactions had been executed according to the investor’s orders. She also counterfeited the investor’s signature to apply for an ATM card for the banking account the investor had opened for the purpose of accepting redemption money transfers, counterfeited the investor’s signature to execute redemption transactions, and used the ATM card to withdraw money from the banking account and spent it for her own benefit. Such wrongful acts incurred the total damage of 6.95 million baht onto the investor.  

SEC has considered that {A} failed to perform duties with loyalty* by committing wrongful acts against the investor’s assets, which was an offense liable to revocation of approval as securities investment consultant. However, the approval as securities investment consultant for {A} has already expired since 31 December 2019. SEC has therefore prohibited her from re-entering as capital market business personnel for a period of 10 years, effective from 15 July 2020.  

In addition, SEC has found that this misconduct had been partially caused by {B}, the bank’s branch manager at the time, whose negligence in inspecting and supervising duty performance of {A}, her subordinate, in a reasonable and proper manner, led to opportunities for committing misconduct. {B}’s act was deemed a failure to comply with the Notification of the Capital Market Supervisory Board.** SEC has therefore prohibited {B} from performing duties as branch manager in charge of capital market business and suspended her approval as investment consultant for Complex Instruments Type 2*** and investment planner for one month and 10 days. However, the bank had already penalized {B} by transferring her to perform duties unrelated to provision of services for sales of securities products from 25 December 2018 to 16 April 2020, which exceeded the penalty period imposed by SEC. Therefore, it is deemed that {B} has already served SEC’s punishment in full.  

In considering a punitive measure, SEC takes into consideration the following factors: related roles and behaviors of the person(s) under consideration, the penalty already served, the impacts, damage or benefits generated, rectification or other actions benefiting or hindering SEC’s operation, and the record or other past behaviors demonstrating inappropriateness for acting as capital market business personnel.  

Investors are strongly advised to always verify transaction confirmation documents to make sure that they are truly used by the banks in charge to confirm unit subscription. In case of doubts, investors should contact the banks’ client service center or call SEC 24-Hour Public Service Center Hotline at 1207.  

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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.
 

** The prohibited characteristics of capital market business personnel under Clause 31(2) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557, as amended by the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560, and prohibited from performing duties as other personnel in capital market business as approved by SEC under Clause 30(4)(a) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557, as amended.   

*** An investment consultant for Complex Instruments Type 2 is allowed to give advice to investors about capital market products with non-complex features and investment units or debt securities with high risks or complexity, e.g., investment units of mutual funds for institutional investors or ultra-high net worth investors, investment units of mutual funds investing in derivatives, hybrid products, and structured notes.