Bangkok--1 Oct--SEC
The SEC imposed administrative sanctions on seven investment consultants/analysts by revoking approval of Luckika Arromseree, suspending Worasan Jaruphan of Bualuang Securities PLC, Pongpat Thavisomboon of Kasikorn Securities PLC, Suntaree Werotesakon of KTB Securities (Thailand) Co., Ltd., Nattapon Boonjumnong of Globlex Securities Co., Ltd., and Nutthasasi Luangphuangkaew of Classic Gold Futures Co., Ltd., effective from September 29, 2012, and reprimanding Pantaraksa Jaitavin.
On Luckika Arromseree case, her employer reported to the SEC that Luckika failed to meet minimum educational requirements for her job. The SEC's further probe showed that she also failed to meet the SEC’s requirements for investment consultants.
As a result, she was disqualified from being investment consultant under Clause 18(1) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 3/2555 Re: Approval for Personnel of Business Operator to Perform Duty of Investment Analysis and Investment Consultant dated January 18, 2012 as well as has prohibited characteristics under Clause 6(3) of the Notification of the Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 Re: Prohibited Characteristics of Personnel in Capital Market Industry dated September 15, 2000. In this regard, the SEC revoked her approval and banned her re-entry into the industry for two years.
Also reported by his employer Bualuang Securities PLC, the SEC probed into Worasan Jaruphan case and found that Worasan had been entrusted to trade derivatives on behalf of a client for over 3 years and he admitted to the misconduct.
For Nattapon Boonjumnong, the case was lodged by client of Globlex Securities Co., Ltd. indicating that Nattapon had made unauthorized derivatives trading decision and informed the client afterward. Examination on records of investment advice, trade order instructions and confirmations indicated that the client’s instruction was unclear as certain conversions seemed to set investment framework for Nattapon to make trading decision and then inform the client afterward. This could be considered as misconduct for obtaining authorization to make derivatives trading decision on client’s behalf.
The SEC also received complaint lodged by client of Classic Gold Futures Co. Ltd. that Nutthasasi Luangphuangkaew had traded gold futures for client beyond client’s instruction. The SEC found from investigation that the client instruction was unclear and certain conversations could indicate that Nutthasasi had made unauthorized gold futures trading decision and informed the client afterward. Eventually, she admitted that some purchasing transactions were made without the client’s orders to cut loss in the client’s account. This could be considered as misconduct for obtaining authorization to make derivatives trading decision on client’s behalf.
Pantaraksa Jaitavin case was in response to investor compliant indicating that she had made decision to buy securities without her client’s order causing damage to the client. From records of investment advice, trade order instructions and confirmations between Pantaraksa and the client after the incident, she admitted making securities buying decision on behalf of client and later informing the client at the end of the day.
The acts of Worasan, Nattapon, Nutthasasi, and Pantaraksa were in violation of Clause 20(2) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 3/2555 Re: Approval for Personnel of Business Operator to Perform Duty of Investment Analysis and Investment Consultant dated January 18, 2012. The SEC therefore suspended Worasan from performing the duty of investment consultant for three months. Since he has already been subject to a three-month suspension imposed by his employer, the SEC considered that he has already been punished by the SEC's order.
For Nattapon and Nutthasasi, the SEC suspended them for one month while publicly reprimanded Pantaraksa with the record of her demerit for future reference if breach of duty is found.
Pongpat Thavisomboon case was the referral from the Stock Exchange of Thailand concerning derivatives trading of a client of Kasikorn Securities PLC. The securities firm probed into the case and found that Pongpat was the one taking care of the account where trading had been made in relatively high frequency and volume without any record of client’s trade order for three months from the opening of the account to the investigation date. In this regard, Pongpat admitted giving advice and taking the client’s trade orders via mobile phone.
The SEC found Suntaree Werotesakon case during its routine inspection that showed her failure to record some of her advice and clients’ securities trading orders. She also admitted taking such orders via mobile phone.
The acts of Pongpat and Suntaree were in violation of Clause 20(3) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 Re: Approval for Personnel of Business Operator to Perform Duty of Investment Analysis and Investment Consultant dated January 18, 2012. The SEC therefore suspended Pongpat from performing the duty of investment analyst and investment consultant for three months. Taking into account that he has already been suspended by his employer for 14 days, the suspension imposed by the SEC shall therefore remain two months and 16 days. Meanwhile, Suntaree is suspended from performing duty of investment consultant for one month.
Vasant Thienhom, SEC Deputy Secretary-General said that “Nowadays some investors do not realize that it is not permissible for investment consultant, with or without authorization from investors, to make decision in securities and/or derivatives trading on behalf of them. Investment consultant’s scope of duty is to contact and provide investors with investment advice or planning while investors are responsible to make their own investment decision. The SEC therefore urges all securities companies to communicate with investors and strictly prohibit their personnel from involving in the said misconduct in order to diminish channel for fraud or embezzlement related to investors’ assets.”