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SEC suspends a capital market investment consultant for trading on behalf of clients



Wednesday 25 February 2015 | No. 21 / 2015



Bangkok, February 25, 2015 ? The SEC suspended {A}, a capital market investment consultant of Kasikorn Securities Plc. for obtaining authorization to make derivatives and securities trading decisions on behalf of clients.

Following the report of Kasikorn Securities Plc., the SEC probed into the case and found that {A} had been authorized by two clients to make derivatives and securities trading decisions for them. From October 2012 to March 2013, he made trading decisions on behalf of the clients on a continuous basis with more than 300 million baht in trading value. Moreover, he traded for the clients more than 93 million baht during July 2013-January 2014. Evidence indicated that in the former period, he made trading decisions and notified his clients afterwards. The clients then acknowledged without any objection. Meanwhile, in the latter period, he sought approval from the clients on the broad pre-determined price ranges of derivatives and securities. Accordingly, he could immediately execute trading orders once the prices match the target.

Obtaining authorization to make derivatives and securities trading decisions on behalf of clients was in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended {A} from his duty as the approved capital market investment consultant for six months. Taking into account that he had already been suspended by his employer for one month; the suspension imposed by the SEC shall remain five months, effective from February 26, 2015.

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* 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 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. The actions were in violation of Clause 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. 21 / 2015 Wednesday 25 February 2015
SEC suspends a capital market investment consultant for trading on behalf of clients


Bangkok, February 25, 2015 ? The SEC suspended {A}, a capital market investment consultant of Kasikorn Securities Plc. for obtaining authorization to make derivatives and securities trading decisions on behalf of clients.

Following the report of Kasikorn Securities Plc., the SEC probed into the case and found that {A} had been authorized by two clients to make derivatives and securities trading decisions for them. From October 2012 to March 2013, he made trading decisions on behalf of the clients on a continuous basis with more than 300 million baht in trading value. Moreover, he traded for the clients more than 93 million baht during July 2013-January 2014. Evidence indicated that in the former period, he made trading decisions and notified his clients afterwards. The clients then acknowledged without any objection. Meanwhile, in the latter period, he sought approval from the clients on the broad pre-determined price ranges of derivatives and securities. Accordingly, he could immediately execute trading orders once the prices match the target.

Obtaining authorization to make derivatives and securities trading decisions on behalf of clients was in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended {A} from his duty as the approved capital market investment consultant for six months. Taking into account that he had already been suspended by his employer for one month; the suspension imposed by the SEC shall remain five months, effective from February 26, 2015.

# # # #

* 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 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. The actions were in violation of Clause 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.