Bangkok, 27 September 2023 – SEC has ordered a revocation of an approval of an investment consultant, Mr. Phisit Taninrungroj, for 10 years for committing dishonest acts by using clients’ trading accounts to seek benefits for himself and the others, a misconduct of client asset exploitation. At the time of his wrongdoing, he was employed by RHB Securities (Thailand) PLC (RHB).

Following a complaint from an investor who is not a client of RHB and the SEC’s further investigation into the case, it was found that during June 2020 – May 2022, Phisit had solicited investors to open securities trading accounts and to transfer investment money into those accounts several times in the amount totaling 23 million baht. However, Phisit did not open the accounts for clients but used such money for securities trading in his sister’s account opened with the RHB and did not return the money to investors as agreed, causing damage to the investors.

Phisit’s misconduct, using clients’ trading accounts to seek benefits for himself and the others and exploiting client assets, is deemed failure to perform duties or provide services with loyalty, which are considered prohibited characteristics of capital market business personnel under the provisions of the Notification of the Capital Market Supervisory Board*. The SEC therefore revoked the approval of Phisit as an investment consultant for complex products Type 1 (IC complex 1**) for 10 years, effective from 27 September 2023.***

In deliberating the imposition of administrative sanctions above, the SEC has taken into account the following factors, i.e. relevant roles and demeanors of the person under consideration, other penalty that he/she has already served, the impact, damage or benefits incurred from facts or demeanors under consideration, rectifications or other acts that benefit or impede the SEC’s proceedings, and records or any other past demeanors which indicate inappropriateness to be personnel in the capital market business.

In this connection, investors are strongly advised to be careful with solicitations to trade securities in other persons’ accounts and not to transfer money into IC personal accounts as it may lead to investment frauds with considerable loss of money. In case of any doubts, investors should contact the business operator or the “SEC Help Center” via telephone hotline 1207, SEC Facebook page or SEC Live Chat on the SEC web site.

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Remarks:

* Clause 23(1) refers to the prohibited characteristic of the 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.

** investment consultant for complex products Type 1 is allowed to give investment advice on all types of complex, non-complex and high-risk capital market products, e.g. investment units of mutual funds offered to institutional or ultra-high net worth investors, investment units of mutual funds with investment in derivatives, hybrid securities, structured notes, and derivatives.

***Phisit’s application for obtaining SEC approval to be personnel in the capital market business during the period of 10 years starting from 27 September 2023 will not be accepted.