Sign In
SEC News
The SEC discloses an inappropriate behavior and suspends a securities investment consultant



Tuesday 24 March 2015 | No. 38 / 2015



Bangkok, March 24, 2015 - The SEC disclosed an inappropriate behavior and imposed a suspension on {A}, a former employee of KGI (Thailand) Securities Plc., for failure to completely record client?s trading orders, trading securities on behalf of client and making trading decisions for benefit of client without the client?s orders.

Following a complaint against {A} lodged by a client of KGI Securities (Thailand) Plc, the SEC probed into the case and found that {A} had traded the securities on the client's securities account without client?s order and resulted in the trading loss. In addition, several trading transactions had no source of orders. It was also found in the recorded conversation that {A} had been allowed by the client to make securities trading decision. He informed the client of the trading while the client did not reject the transactions. Besides, intra-day trading orders of a listed company's shares were found where the buying prices were higher than the selling ones, causing the client to suffer huge loss. The source of those trading orders was not found and the client, once being informed of the trading, rejected those transactions.

Failure to completely record client's trading orders, trading securities on behalf of client, and making securities trading decisions for the client's benefit without the client's orders were in violation to the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore disclosed inappropriate behavior of {A} for failure to completely record client's trading orders and suspended him from the duty as the approved securities investment consultant for 7 months for trading on behalf of client and making securities trading decisions for benefit of client without the client's orders, effective from March 23, 2015. 

* Failure to completely record client?s trading orders was in violation to Clause 20(3) 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 (No. TorLorThor. 3/2555) while trading on behalf of client and making securities trading decisions for benefit of client without the client?s orders were in violation to Clause 20(2) of No. TorLorThor. 3/2555. The aforesaid actions were violation of Clauses 20(2) and 20(3) of No. TorLorThor. 3/2555 and were the 3rd category 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 which were in violation to the Clauses 23(2) and (3) and were the 3rd category 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.












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. 38 / 2015 Tuesday 24 March 2015
The SEC discloses an inappropriate behavior and suspends a securities investment consultant


Bangkok, March 24, 2015 - The SEC disclosed an inappropriate behavior and imposed a suspension on {A}, a former employee of KGI (Thailand) Securities Plc., for failure to completely record client?s trading orders, trading securities on behalf of client and making trading decisions for benefit of client without the client?s orders.

Following a complaint against {A} lodged by a client of KGI Securities (Thailand) Plc, the SEC probed into the case and found that {A} had traded the securities on the client's securities account without client?s order and resulted in the trading loss. In addition, several trading transactions had no source of orders. It was also found in the recorded conversation that {A} had been allowed by the client to make securities trading decision. He informed the client of the trading while the client did not reject the transactions. Besides, intra-day trading orders of a listed company's shares were found where the buying prices were higher than the selling ones, causing the client to suffer huge loss. The source of those trading orders was not found and the client, once being informed of the trading, rejected those transactions.

Failure to completely record client's trading orders, trading securities on behalf of client, and making securities trading decisions for the client's benefit without the client's orders were in violation to the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore disclosed inappropriate behavior of {A} for failure to completely record client's trading orders and suspended him from the duty as the approved securities investment consultant for 7 months for trading on behalf of client and making securities trading decisions for benefit of client without the client's orders, effective from March 23, 2015. 

* Failure to completely record client?s trading orders was in violation to Clause 20(3) 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 (No. TorLorThor. 3/2555) while trading on behalf of client and making securities trading decisions for benefit of client without the client?s orders were in violation to Clause 20(2) of No. TorLorThor. 3/2555. The aforesaid actions were violation of Clauses 20(2) and 20(3) of No. TorLorThor. 3/2555 and were the 3rd category 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 which were in violation to the Clauses 23(2) and (3) and were the 3rd category 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.