Sign In
SEC News
SEC suspends two investment consultants for trading on behalf of clients



Thursday 27 March 2014 | No. 42 / 2014


Bangkok, March 27, 2014 - The SEC suspended {A}, a former capital market investment consultant of UOB Kay Hian Securities (Thailand) Plc, and {B}, a capital market investment consultant of Krungsri Securities Plc., for trading securities on behalf of clients.

From a routine inspection of UOB Kay Hian Securities (Thailand) Plc, the SEC probed into {A}'s case and found certain communication record, indicating that he had been authorized by his client to make securities trading decisions on the client's behalf. The communication record showed that {A} called to inform his client of the trading orders already submitted where a number of transactions had no details of either amount or price of securities. From the record, in addition, the client sometimes allowed him to make trading decision and the client accepted the proposed transactions. At the end of trading day, {A} notified the amount of money to be received or paid whereas the client did not reject or decline the transactions.

In case of {B}, following a report from Krungsri Securities Plc., the SEC probed into the case and found certain communication record, indicating that he had been authorized by his client to make securities trading decisions on the client's behalf. The communication record showed that {B} sent trading orders and afterwards informed the client who did not reject the transactions. The record also proved that he did not notify his client of some transactions.

Making securities trading decisions on behalf of client is in violation of Clause 20(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012. The SEC therefore suspended {A} for three months and {B} for one month from their duties as approved capital market investment consultants effective from March 27, 2014. For {B} who had already been suspended by his employer for fifteen days, however, the suspension imposed by the SEC shall remain fifteen days. 












Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 42 / 2014 Thursday 27 March 2014
SEC suspends two investment consultants for trading on behalf of clients

Bangkok, March 27, 2014 - The SEC suspended {A}, a former capital market investment consultant of UOB Kay Hian Securities (Thailand) Plc, and {B}, a capital market investment consultant of Krungsri Securities Plc., for trading securities on behalf of clients.

From a routine inspection of UOB Kay Hian Securities (Thailand) Plc, the SEC probed into {A}'s case and found certain communication record, indicating that he had been authorized by his client to make securities trading decisions on the client's behalf. The communication record showed that {A} called to inform his client of the trading orders already submitted where a number of transactions had no details of either amount or price of securities. From the record, in addition, the client sometimes allowed him to make trading decision and the client accepted the proposed transactions. At the end of trading day, {A} notified the amount of money to be received or paid whereas the client did not reject or decline the transactions.

In case of {B}, following a report from Krungsri Securities Plc., the SEC probed into the case and found certain communication record, indicating that he had been authorized by his client to make securities trading decisions on the client's behalf. The communication record showed that {B} sent trading orders and afterwards informed the client who did not reject the transactions. The record also proved that he did not notify his client of some transactions.

Making securities trading decisions on behalf of client is in violation of Clause 20(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012. The SEC therefore suspended {A} for three months and {B} for one month from their duties as approved capital market investment consultants effective from March 27, 2014. For {B} who had already been suspended by his employer for fifteen days, however, the suspension imposed by the SEC shall remain fifteen days.