Bangkok--Feb 28--SET
SET Closes the Case on Brokerage or Agent Fees’ Rebates by Kim Eng Securities (Thailand) Pcl.
SET Executive Vice President Mr. Suthichai Chitvanich disclosed that: “The Stock Exchange of Thailand (SET), through its Sub-committee for the Consideration of Offenses Relating to, and Punishment for, the Charging of Brokerage or Agent Fees for the Buying and Selling of Listed Securities, has ruled that Kim Eng Securities (Thailand) Pcl. has violated the SET’s Rules and Procedures for Collecting Brokerage or Agent Fees and the SET regulations on Good Corporate Governance of Members, A.D. 2002, with the following details:
1. The Company paid bonuses to 3 branch office managers equal to 6% of their respective branch’s total commissions. These managers, however, neither supervised all of their marketing officers nor served all of their branch’s customers as they should have done. This was a failure to comply with the SET’s Announcement of Rules and Procedures.
2. “The Company gave 3 marketing officers, who normally receive income under the incentive scheme, credit for customers whose accounts they did not service, resulting in their receiving compensation in excess of that permitted by the SET’s regulations.
“By virtue of Articles 18, 25, 27 and 28 of the Rules dated January 11, 2002; the Sub-committee resolved to place the Company on probation and has ordered it to rectify the organization and compensation scheme of these 3 branches to be in compliance with the SET’s regulations. These changes must be accomplished within 3 months from the date of receiving the notification letter. The Company shall also be fined THB1,700,000. (approx. USD43,590).
“In addition to the fine, the SET has ordered that 6 executives of Kim Eng Securities (Thailand), as well as the 3 marketing officers involved, must henceforth monitor and control the operations of the company strictly in compliance with the SET’s regulations,” the SET EVP said.
The SET has already informed Kim Eng Securities (Thailand) Pcl. about these resolutions. The company acknowledged the results and does not wish to appeal. Kim Eng Securities (Thailand) Pcl. has confirmed that its policies are to operate strictly in compliance with the SET’s regulations, and stated that these violations were operational errors. The Company assured the SET that it will further require its management and compliance unit to more strictly oversee the company’s operations so as to keep them better in line with the SET’s rules and regulations.
For more information, please contact the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037 / Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797
End.