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SEC suspends an investment consultant for trading securities without client?s order



Thursday 2 October 2014 | No. 142 / 2014


Bangkok, October 2, 2014 - The SEC suspended {A}, a capital market investment consultant of Globlex Securities Company Limited, for trading on a securities trading account of the client without client's order and failing to perform in accordance with the client's order.

Following a client complaint report filed by Globlex Securities Company Limited, the SEC probed into the case and found that {A}'s client had ordered to sell 50,000 shares at 19 baht per share on February 25, 2014 but {A} instead submitted the selling orders for 49,000 shares at 17.50 baht per share. {A} admitted doing such action because the highest price on that day was lower and was decreasing during the submission of selling order. She also admitted sending the trading orders without her client's order from January 9, 2014 to February 26, 2014, reasoning that she intended to take profit for the client by selling out when the price increased and buying back when the price declined.  

Making trading decisions of securities in the client's account without the client's order and failing to perform in accordance with the client's order were in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended {A} from her duty as the approved capital market investment consultant for 2 months. Taking into account that {A} had already been suspended by her employer; the suspension imposed by the SEC is deemed to have been served.

_________________

Note:   Clauses 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 and Clauses 23(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014 which have been promulgated in replacement of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555.












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No. 142 / 2014 Thursday 2 October 2014
SEC suspends an investment consultant for trading securities without client?s order

Bangkok, October 2, 2014 - The SEC suspended {A}, a capital market investment consultant of Globlex Securities Company Limited, for trading on a securities trading account of the client without client's order and failing to perform in accordance with the client's order.

Following a client complaint report filed by Globlex Securities Company Limited, the SEC probed into the case and found that {A}'s client had ordered to sell 50,000 shares at 19 baht per share on February 25, 2014 but {A} instead submitted the selling orders for 49,000 shares at 17.50 baht per share. {A} admitted doing such action because the highest price on that day was lower and was decreasing during the submission of selling order. She also admitted sending the trading orders without her client's order from January 9, 2014 to February 26, 2014, reasoning that she intended to take profit for the client by selling out when the price increased and buying back when the price declined.  

Making trading decisions of securities in the client's account without the client's order and failing to perform in accordance with the client's order were in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended {A} from her duty as the approved capital market investment consultant for 2 months. Taking into account that {A} had already been suspended by her employer; the suspension imposed by the SEC is deemed to have been served.

_________________

Note:   Clauses 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 and Clauses 23(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014 which have been promulgated in replacement of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555.