Bangkok--18 Feb--SEC
The SEC imposed a five-month suspension on Panaboon Sombatyanuchit, a securities market investment consultant of Bualuang Securities Plc., and a three-month suspension on Passakron Srichaitun, a securities market investment consultant of Finansia Syrus Securities Plc.
The SEC found from its routine inspection that Panaboon frequently failed to keep records of his advice and clients’ securities trading orders. He also admitted taking such trading orders via mobile phone. In addition, some of his clients’ trading orders showed the concurrent price and time of the securities traded or canceled. Furthermore, the SEC found from conversation records that Panaboon had obtained authorizations to make trading decisions for the clients.
Panaboon’s actions are deemed in violation of Clause 20(2) and (3) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012. Previously, he was warned by the SEC and punished by Bualuang Securities Plc. as he failed to record his advice and clients’ securities trading orders in the same year for three occasions. However, he kept repeating the same mistakes, and concurrently obtained many of his client authorizations to make decision on behalf of them. The SEC therefore suspended him from duty as an approved securities market investment consultant for a period of five months, effective from February 16, 2013
In case of Passakron, the SEC received a report from Finansia Syrus Securities Plc., that he had been authorized by his client to make securities borrowing and lending (SBL) trading decisions on the client’s behalf in the client’s cash account; thereby causing damage to the client. Passakron admitted that he had obtained the authorization from his client and made SBL trading decisions for the client when there was profit or risk with the client’s account. He then informed his client via telephone with regard to the profit and loss on such trading.
In performing their duties, investment consultants can send trading orders only when obtaining instructions directly from the client. They cannot make decisions on behalf of clients, regardless of the client’s permission. In this regard, the aforesaid Passakron’s actions are in violation of Clause 20(2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012. The SEC therefore suspended him from duty as an approved securities market investment consultant for a period of three months. Taking into account that he has already been suspended by his employer for one month, the suspension imposed by the SEC shall therefore be reduced to two months, effective from February 16, 2013