Bangkok--20 Nov--SEC
The SEC revoked approval of three investment consultants, namely (1) Muthita Somvong of Sicco Securities PLC, (2) Phakkawat Buawan, then an employee of Asia Plus Securities PLC, and (3) Chokchai Karnsalee, then an employee of MTS Gold Futures Co., Ltd., effective from November 20, 2012.
Following a report on Muthita Somvong case filed by Sicco Securities PLC (presently CIMB Securities International (Thailand) PLC), the SEC probed into the case and found that her client had authorized her to sell securities in the client account during the client’s overseas trip, if getting profit, while the client would make the buying orders for additional securities. Muthita, however, made decision to buy and sell securities in the client account. She also sold securities in such account with a total value of more than 900,000 baht to set-off against losses resulting from her trading decision made on behalf of the client. She then falsely informed her client that the money obtained from selling the securities was transferred to the client securities trading account as collateral. In this case, Muthita had continuously done day trading of client securities for 25 working days worth approximately 109 million baht, resulting in her incentives to increase significantly. She admitted that she had made trading decision for the client without client’s instruction.
Also reported by Asia Plus Securities PLC, the SEC probed into Phakkawat Buawan case and found that he had been authorized to trade securities on behalf of the client. He had also used his client’s account to trade securities for the benefit of himself with one day permission and credit line specified by the client. He then made payment to such client for his own securities trading.
The aforesaid acts of Muthira and Phakkawat were deemed dishonest and unprofessional in violation of Clauses 20(1) and 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 revoked their approval and banned Muthita to re-entry into the industry for two years while Phakkawat was barred for one year and one month.
Chokchai Karnsalee case was reported by MTS Gold Futures Co., Ltd. The SEC’s finding indicated that he had falsified documents by signing the documents on behalf of the client and made copy of client’s identification card to obtain a gift voucher. When the client made inquiry on the matter, he concealed the fact and embezzled the 1,000 baht gift voucher for himself.
His acts were deemed dishonest in violation of Clause 20(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. In this case, the SEC revoked his approval and barred him from serving as capital market personnel for two years.
Vasant Thienhom, SEC Deputy Secretary-General said that “Investors must not authorize or permit investment consultants to make securities trading on their behalves. While investment consultant has the duty only to provide investors with investment advice or planning, investors are responsible for making their own trading decision to prevent embezzlement and misappropriation of their assets. Importantly, investment consultant must perform the duty honestly, adhere to professional standards and ethic as well as deny any clients’ authorization to trade securities or derivatives on their behalves.”