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SEC suspends a capital investment consultant for making trading decision on client?s behalf



Monday 15 June 2015 | No. 77 / 2015



Bangkok, June 15, 2015 ' The SEC suspended {A}, a capital investment consultant for trading securities and derivatives on behalf of client. He worked with Globlex Securities Company Limited while the misconduct occurred. Following the inspection report of Globlex Securities Company Limited, the SEC further probed into the case and found that {A} convinced a client to trade securities and derivatives. He admitted that the client, at the beginning, had authorized him to make securities and derivatives trading decisions on her behalf. Also, the recorded conversation found later indicated that the client permitted {A} to make further securities trading decisions. Besides, the securities and derivatives trading volume in the client?s account was high during the misconduct.

Trading securities and derivatives 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 3 months, effective from June 16, 2015.

The investment consultant is unable to make any trading decisions on behalf of the client even with the client's permission. In a number of cases, the clients authorized the investment consultants to make trading decisions on their behalf. Usually, those clients did not have enough time or viewed that the investment consultants were more knowledgeable or had better information than them. A number of clients were affected from trading and suffered losses. In many cases, the authorization led to trading more than the clients? intention and brought about disputes between the clients and the investment consultants as well as the securities firms. Therefore, the SEC urges collaboration among investors not to make such authorization.

*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. The actions were 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. 77 / 2015 Monday 15 June 2015
SEC suspends a capital investment consultant for making trading decision on client?s behalf


Bangkok, June 15, 2015 ' The SEC suspended {A}, a capital investment consultant for trading securities and derivatives on behalf of client. He worked with Globlex Securities Company Limited while the misconduct occurred. Following the inspection report of Globlex Securities Company Limited, the SEC further probed into the case and found that {A} convinced a client to trade securities and derivatives. He admitted that the client, at the beginning, had authorized him to make securities and derivatives trading decisions on her behalf. Also, the recorded conversation found later indicated that the client permitted {A} to make further securities trading decisions. Besides, the securities and derivatives trading volume in the client?s account was high during the misconduct.

Trading securities and derivatives 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 3 months, effective from June 16, 2015.

The investment consultant is unable to make any trading decisions on behalf of the client even with the client's permission. In a number of cases, the clients authorized the investment consultants to make trading decisions on their behalf. Usually, those clients did not have enough time or viewed that the investment consultants were more knowledgeable or had better information than them. A number of clients were affected from trading and suffered losses. In many cases, the authorization led to trading more than the clients? intention and brought about disputes between the clients and the investment consultants as well as the securities firms. Therefore, the SEC urges collaboration among investors not to make such authorization.

*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. The actions were 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.