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SEC suspends an investment consultant for failure to disclose investment risk and trading securities on behalf of clients



Monday 12 January 2015 | No. 6 / 2015



Bangkok, January 12, 2015 ? The SEC imposed suspension on {A}, a former capital market investment consultant of Maybank Kim Eng Securities (Thailand) Plc., for failure to disclose specific risk of securities and trading securities on behalf of clients.

Following a client complaint report filed by Maybank Kim Eng Securities (Thailand) Plc., the SEC further probed into the case and found that {A} advised her client to buy derivative warrant without informing the client of specific risk of securities, the securities? last trading date and maturity date. {A} admitted that she advised the client to buy derivative warrant but did not inform the client of maturity date. In addition, there was no source of trading orders of her clients where {A} described that the clients submitted trading orders via mobile phone and Line Application. However, the recorded conversation showed that she accepted to trade securities on behalf of clients.

Failure to disclose specific risk  of securities and trading securities on behalf of clients 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 five months. Taking into account that {A} had already been suspended by her employer for three months, the suspension imposed by the SEC shall remain two months, effective from January 10, 2015.

*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 which was prohibited characteristics of personnel in the capital market business under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 re: Prohibitions for Personnel of Business Operators dated September 15, 2010. It was in violation of Clauses 23(2) and the prohibited characteristics of the personnel in the capital market business under Clause 31(1) 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 has been promulgated in replacement of the said two notifications.

 

 












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No. 6 / 2015 Monday 12 January 2015
SEC suspends an investment consultant for failure to disclose investment risk and trading securities on behalf of clients


Bangkok, January 12, 2015 ? The SEC imposed suspension on {A}, a former capital market investment consultant of Maybank Kim Eng Securities (Thailand) Plc., for failure to disclose specific risk of securities and trading securities on behalf of clients.

Following a client complaint report filed by Maybank Kim Eng Securities (Thailand) Plc., the SEC further probed into the case and found that {A} advised her client to buy derivative warrant without informing the client of specific risk of securities, the securities? last trading date and maturity date. {A} admitted that she advised the client to buy derivative warrant but did not inform the client of maturity date. In addition, there was no source of trading orders of her clients where {A} described that the clients submitted trading orders via mobile phone and Line Application. However, the recorded conversation showed that she accepted to trade securities on behalf of clients.

Failure to disclose specific risk  of securities and trading securities on behalf of clients 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 five months. Taking into account that {A} had already been suspended by her employer for three months, the suspension imposed by the SEC shall remain two months, effective from January 10, 2015.

*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 which was prohibited characteristics of personnel in the capital market business under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 re: Prohibitions for Personnel of Business Operators dated September 15, 2010. It was in violation of Clauses 23(2) and the prohibited characteristics of the personnel in the capital market business under Clause 31(1) 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 has been promulgated in replacement of the said two notifications.