Sign In
SEC News
SEC suspends investment consultant for failing to give complete information or advice to investor



Thursday 31 January 2019 | No. 12 / 2019


Bangkok, 31 January 2019 - The SEC has suspended approval for {A} as a securities investment consultant for one month on the ground of giving information or investment advice incompletely or incorrectly, and failing to disclose material information to support an investor's decision making.

Following a client complaint, the SEC made further investigation and found that in May 2016 {A}, then working for RHB Securities (Thailand) Public Company Limited, advised the client to buy shares of a company, claiming that such company was in the listing process of the Stock Exchange of Thailand (SET), when in fact the company had already been listed and its shares were being on Suspension Trading (SP) sign. Moreover, he failed to give relevant documents to the client before the client decided to invest in such shares. As a result, the client was misled by the information and advice given by {A}, purchased such shares at the amount of 5 million baht, and suffered damage from the purchase.


By giving incomplete or incorrect information to the investor and failing to give or disclose material information that may have affected the investor's decision making, {A} failed to perform duty with responsibility and deliberation as a professional. His misconduct was in violation of the Notification of the Capital Market Supervisory Board*. The SEC therefore suspended his approval as securities investment consultant for one month. In this regard, RHB Securities (Thailand) has already suspended him from work for an equal period of one month. Thus, the SEC's suspension is deemed to have been served.

Investors are strongly advised to be careful with such manner of solicitation above and verify the existence of the solicited shares or examine if the offering in question has been properly filed with the SEC before making investment decisions. Direct inquiries can be made to the securities company where the investment consultant works, the SET or the SEC.

_____________________
 

* Clause 23(2) and deemed to be the prohibited characteristics of personnel in the capital market business under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014, as amended by  the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560 Re: Rules on Personnel in the Capital Market Business (No. 7) dated 30 August 2017. 
 












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. 12 / 2019 Thursday 31 January 2019
SEC suspends investment consultant for failing to give complete information or advice to investor

Bangkok, 31 January 2019 - The SEC has suspended approval for {A} as a securities investment consultant for one month on the ground of giving information or investment advice incompletely or incorrectly, and failing to disclose material information to support an investor's decision making.

Following a client complaint, the SEC made further investigation and found that in May 2016 {A}, then working for RHB Securities (Thailand) Public Company Limited, advised the client to buy shares of a company, claiming that such company was in the listing process of the Stock Exchange of Thailand (SET), when in fact the company had already been listed and its shares were being on Suspension Trading (SP) sign. Moreover, he failed to give relevant documents to the client before the client decided to invest in such shares. As a result, the client was misled by the information and advice given by {A}, purchased such shares at the amount of 5 million baht, and suffered damage from the purchase.


By giving incomplete or incorrect information to the investor and failing to give or disclose material information that may have affected the investor's decision making, {A} failed to perform duty with responsibility and deliberation as a professional. His misconduct was in violation of the Notification of the Capital Market Supervisory Board*. The SEC therefore suspended his approval as securities investment consultant for one month. In this regard, RHB Securities (Thailand) has already suspended him from work for an equal period of one month. Thus, the SEC's suspension is deemed to have been served.

Investors are strongly advised to be careful with such manner of solicitation above and verify the existence of the solicited shares or examine if the offering in question has been properly filed with the SEC before making investment decisions. Direct inquiries can be made to the securities company where the investment consultant works, the SET or the SEC.

_____________________
 

* Clause 23(2) and deemed to be the prohibited characteristics of personnel in the capital market business under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014, as amended by  the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560 Re: Rules on Personnel in the Capital Market Business (No. 7) dated 30 August 2017.