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SEC suspends two investment consultant and investment planner for performing duties without loyalty, causing damage to investors



Friday 6 March 2020 | No. 44 / 2020


Bangkok, 6 March 2020 – SEC has suspended an investment consultant for complex instruments named {A} and an investment consultant for complex instruments and investment planner named {B} for twelve months each, for failing to perform duties or giving services with loyalty. At the time of their misconduct, both were working for KGI Securities (Thailand) Public Company Limited.

Following investors’ complaints and SEC’s further investigation, it was found that during 2013 – early 2015, a group of persons opened a learning course on the topic of technical analysis and gave advice on derivatives investment without approval through many channels such as website, YouTube, email, phone, SMS and Line application. {A} and {B}, then investment consultants at KGI, cooperated with the group of persons above in opening trading accounts for investors to make derivatives investments. They executed trading orders in investors’ accounts, told investors to send trading orders according to the advice of a member of the group of persons, and shared benefits from the trading incentives with such member. Such acts caused damage to several investors. 

In this regard, SEC has filed a criminal complaint with the Economic Crime Suppression Division against {A} and {B} and the parties involved on account of being co-principals in operating derivatives business without approval. 

Due to their misconduct in this case, SEC views that {A} and {B} both failed to perform duties or giving services with loyalty.* SEC has therefore suspended the approval as investment consultant for complex instruments type 1** for {A} for a period of 12 months, and the approval as investment consultant for complex instruments type 1 and investment planner for {B} for a period of 12 months***, starting from 9 March 2020.


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Notes:

*  Pursuant to Clause 23(1) and 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.  

** An investment consultant for complex instruments type 1 is allowed to give advice to investors about capital market products without complex features and products with high risks or complexity of all types. Ex., investment units of mutual funds for institutional investors or ultra-high net worth investors, investment units of mutual funds investing in derivatives, hybrid products, structured notes and derivatives.

*** Since the approval period as investment consultant for complex instruments type 1 for {A} and {B} and the approval period as investment planner for {B} will expire on 31 December 2020, SEC has therefore suspended their approvals, from the effective date of the sanction until the expiry date of their respective approvals, and will not accept their future application for approval as personnel in the capital market business for the remaining period of the 12-month suspension.