Bangkok, 11 January 2021 – The Securities and Exchange Commission (SEC) has banned a former investment consultant named Mr. Somchai Poungrayar from performing duties as capital market business personnel for four years and eight months on account of committing wrongful acts against an investor’s assets. At the time of the offense, he was working for TMB Bank Public Company Limited.
Following the investor’s complaint and SEC’s further investigation, it was found that Somchai had committed wrongful acts against the investor’s assets. In so doing, he withdrew money from the client’s account by using the passbook and withdrawal slips signed in advance by the client and kept by Somchai, at an amount higher than the ordered amount. He then used the excessive amount for his own benefits, totaling 341,669 baht. In addition, Somchai arranged a suitability test for the client while giving information inconsistent with facts, and failed to ask the client to sign in acceptance of a higher risk level in buying financial products with a higher risk than the client’s risk profile.
SEC has considered the case and viewed that Somchai had behaviors with dishonest implication, affecting the credibility of capital market business personnel, and failed to perform duties responsibly with professional due care, which were deemed prohibited characteristics of personnel in capital market business*. Such wrongful acts against investors’ assets are liable to the highest sanction of revocation of approval for investment consultant for Complex Financial Products Type 2. However, the approval for Somchai as capital market business personnel has lapsed since 31 December 2019 and he is not performing duties at any securities company. SEC has therefore banned Somchai from being personnel in capital market business for four years and eight months, starting from 12 January 2021.
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 not to give passbooks and signed withdrawal slips to investment consultants to facilitate execution of transactions, and to handle transactions by themselves or authorize another person to withdraw money in person every time to reduce the chance of damage impact.
_____________________________
Remark:
* Pursuant to Clause 31(3) 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 (Notification No. Tor Lor Thor. 8/2557), 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 (Notification No. Tor Lor Thor. 8/2557 as amended), and Clause 23(2), which are prohibited characteristics of personnel in the capital market business in accordance with Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 as amended.