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SEC sanctions four capital market personnel for incomplete trading order records



Tuesday 11 March 2014 | No. 33 / 2014


Bangkok, March 11, 2014 - The SEC barred {A} from performing any management position in securities company and suspended his securities investment analyst approval status. In addition, the SEC suspended three other securities investment consultants, namely (1) {B}, (2) {C}, and (3) {D}. The sanctions took effect from March 11, 2014.

The SEC found in the course of its routine inspection of Country Group Securities Plc. that {A}, a securities investment analyst and Songkla branch manager and three other securities investment consultants at Central Chaengwattana branch, namely {B}, {C} and {D} (then worked for Country Group), had used incomplete Customer Confirmation and Portfolio reports in substitution for order tickets. Their actions were deemed as failure to record the customers? securities trading orders made in the trading room, a violation of Clauses 20(3) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 3/2555 Re: Approval for Personnel of Business Operator to Perform Duty of Investment Analysis and Investment Consultant dated January 18, 2012. The said actions were also classified as prohibited characteristics of personnel in capital market according to Clause 6(1) of the of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 Re: Prohibited Characteristics of Personnel in Capital Market Industry dated September 15, 2010.

The SEC therefore barred {A} from performing any management position of securities company and suspended his securities investment analyst approval status for one month. In cases of the other securities investment consultants, the SEC suspended {B}'s securities investment consultant approval status for two months while suspended {C} and {D} for one month each. The sanctions were effective from March 11, 2014.

Vasant Thienhom, SEC Deputy Secretary-General said that "In case of using customer trading order report in substitution for order ticket, the document must be prepared according to the SEC circular No. SEC.Thor.(Wor) 25/2552 dated August 10, 2009. The customer trading order report qualified to be used in substitution for order ticket must be in form of computer printout and signed by the customer on a daily basis.  The report must contain every securities trading order including non-matched order together with details on sending time, canceling time, number of shares and share prices. Moreover, the statement indicating the customer's confirmation that he or she was the person sending the securities trading orders must also be included."    

 












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No. 33 / 2014 Tuesday 11 March 2014
SEC sanctions four capital market personnel for incomplete trading order records

Bangkok, March 11, 2014 - The SEC barred {A} from performing any management position in securities company and suspended his securities investment analyst approval status. In addition, the SEC suspended three other securities investment consultants, namely (1) {B}, (2) {C}, and (3) {D}. The sanctions took effect from March 11, 2014.

The SEC found in the course of its routine inspection of Country Group Securities Plc. that {A}, a securities investment analyst and Songkla branch manager and three other securities investment consultants at Central Chaengwattana branch, namely {B}, {C} and {D} (then worked for Country Group), had used incomplete Customer Confirmation and Portfolio reports in substitution for order tickets. Their actions were deemed as failure to record the customers? securities trading orders made in the trading room, a violation of Clauses 20(3) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 3/2555 Re: Approval for Personnel of Business Operator to Perform Duty of Investment Analysis and Investment Consultant dated January 18, 2012. The said actions were also classified as prohibited characteristics of personnel in capital market according to Clause 6(1) of the of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 Re: Prohibited Characteristics of Personnel in Capital Market Industry dated September 15, 2010.

The SEC therefore barred {A} from performing any management position of securities company and suspended his securities investment analyst approval status for one month. In cases of the other securities investment consultants, the SEC suspended {B}'s securities investment consultant approval status for two months while suspended {C} and {D} for one month each. The sanctions were effective from March 11, 2014.

Vasant Thienhom, SEC Deputy Secretary-General said that "In case of using customer trading order report in substitution for order ticket, the document must be prepared according to the SEC circular No. SEC.Thor.(Wor) 25/2552 dated August 10, 2009. The customer trading order report qualified to be used in substitution for order ticket must be in form of computer printout and signed by the customer on a daily basis.  The report must contain every securities trading order including non-matched order together with details on sending time, canceling time, number of shares and share prices. Moreover, the statement indicating the customer's confirmation that he or she was the person sending the securities trading orders must also be included."