The Securities and Exchange Commission (SEC), with the reports from the Krungthai Bank PLC and the SEC’s further investigation, found that in November 2021 Saowarat had misappropriated her client assets, redeeming the mutual fund units without client consent in the following manner, causing damage to the client, who had completely compensated, in the amount totaling 1,027,000 baht:
          1. Using the client’s identification card left with her to verify the identity, the password of the authorized person to approve the unit redemption transactions, and the client’s internet banking account to transfer the money received from the mutual fund units redeemed to her own account for personal use; 
          2. Transferring additional deposit from the client’s account to her own account on the same day.

Saowarat’s misconduct according to (1) is deemed failure to perform duties or provide services with loyalty by misappropriating client assets, and according to (2) is deemed acting in the manner that implies dishonesty, affecting the reliability of capital market business personnel in a significant manner, both of which are considered prohibited characteristics of the capital market business personnel under the provisions of the Notification of the Capital Market Supervisory Board*. The SEC therefore revoked the approval of Saowarat as an investment consultant for complex products Type 2 (IC complex 2**) and specified a period, during which her resubmission for an application for an approval as a capital market business personnel would not be accepted, for nine years and twelve months, effective from 19 October 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 the 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.

Investors are strongly advised to regularly examine the mutual fund unitholding reports as well as related bank accounts. Moreover, investors should not leave important investment documents with ICs. In case of any doubts or inquiries, 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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* Failure to perform the duties under Clause 23(1), subject to the prohibited characteristics of the personnel in the capital market business under Clauses 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, 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 2 is allowed to give investment advice on all types of non-complex capital market products and complex or high-risk debt instruments or investment units, 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, and structured notes.
***Saowarat’s application for obtaining SEC approval to be personnel in the capital market business during the period of nine years and twelve months, starting from 19 October 2023, will not be accepted.