Bangkok, 21 January 2019 - The SEC has revoked approval for two investment consultants for using investors' trading accounts to seek benefits for themselves, namely (1) {A}, capital market investment consultant for complex products type 1 and investment planner, and (2) {B}, capital market investment consultant, for a period of two years six months each.

In the case of {A}, the SEC's inspection revealed that during 4 January 2013 - 15 October 2014 {A}, then working for Thanachart Securities Public Company Limited, used the trading account of a client who was his mother to trade securities for himself. Several withdrawal transactions were made from the collateral account of the client to make deposits in the client's account via automatic transfer system (ATS), totaling 6.18 million baht. It was also found that several withdrawal transactions were gradually made from the client's ATS account to his own bank account, totaling 6.16 million baht. Therefore, {A} was considered the true beneficiary of the trading account.

In the case of {B}, it was found that during June - October 2014, {B}, then working for KGI Securities (Thailand) Public Company Limited, borrowed the trading account of a client who was his close friend to trade securities for himself. The amount of money withdrawn from his own account was the same amount deposited as collateral for the client's trading account. The client later withdrew the collateral from the trading account and deposited it into the client's own bank account, totaling 2.53 million baht. Additionally, the total amount of such money was gradually withdrawn and deposited into {B}'s account. Therefore, it was deemed that {B} had used the trading account of the client to trade securities for himself.

The misconduct of {A} and {B} was an exploitation of investors' trading accounts to seek benefits for themselves, which was deemed failure to perform duties or provide services with loyalty pursuant to the Notification of the Capital Market Supervisory Board.*

The SEC has revoked the approval for {A} as capital market investment consultant for complex products type 1** and investment planner, and banned him from applying for a new approval as capital market business personnel for a period of two years and six months, effective from 22 January 2019.

The SEC has revoked the approval for {B} as capital market investment consultant for two years and six months; however, since his approval has already expired, the SEC banned him from applying for a new approval as capital market investment consultant for the said period, effective from 17 January 2019.

Investors are strongly advised to be careful and examine their trading transactions as well as the money in their accounts regularly, and not to allow investment consultants to make investment decisions or use investors? trading accounts for themselves.
 

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* Clause 23(1) and deemed to be the prohibited characteristic of the 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.
 
** Investment Consultant for Complex Products Type 1 is allowed to give investment advice on all types of complex, non-complex and high-risk capital market products.