SEC slaps sanctions on seven consultants

The SEC yesterday announced the following sanctions: revocation of the approval of Luckika Arromseree;  suspension of Worasan Jaruphan of Bualuang Securities Pongpat Thavisomboon of Kasikorn Securities, Suntaree Werotesakon of KTB Securities (Thailand), Nattapon Boonjumnong of Globlex Securities and Nutthasasi Luangphuangkaew of Classic Gold Futures, all effective from September 29; and a reprimand of Pantaraksa Jaitavin.

In Luckika’s case, her employer reported to the SEC that she had failed to meet the minimum educational requirements for her job. The regulator’s subsequent probe showed that she also failed to meet its requirements for investment consultants.

As a result, she was disqualified from being an investment consultant under the relevant regulations. The SEC revoked her approval and banned her re-entry to the industry for two years.

Also reported by his employer, Bualuang Securities, the SEC investigated Worasan, who admitted to misconduct after having been entrusted to trade derivatives on behalf of a client for more than three years.

In the case of Nattapon, a complaint was lodged by a client of Globlex Securities, indicating that he had engaged in unauthorised derivatives trading and only informed the client after the event. 

The SEC’s examination of records indicated that the client’s instruction was unclear, as certain conversations seemed to set an investment framework for Nattapon to make a trading decision and then inform the client afterwards. The regulator said this could, however, be considered misconduct in obtaining authorisation to make a derivatives trading decision on a client’s behalf.

The SEC also received a complaint lodged by a client of Classic Gold Futures that Nutthasasi had traded gold futures beyond the client’s instruction. The SEC found that the instruction was unclear and certain conversations could indicate that she had made unauthorised gold futures trading decisions and informed the client after the event. 

She admitted that some purchasing transactions had been made without the client’s orders so as to cut losses in the client’s account. This could be considered misconduct in obtaining authorisation to undertake a derivatives trading decision on a client’s behalf. 

Pantaraksa’s case was in response to an investor compliant that she had bought securities without her client’s instruction, causing damage to the client. 

The SEC said she admitted to making a securities-buying decision on behalf of the client and 

later informing the client at the end of the day. 

The acts of Worasan, Nattapon, Nutthasasi and Pantaraksa were found to be in violation of SEC regulations.

The regulator therefore suspended Worasan from performing the duty of investment consultant for three months. 

For Nattapon and Nutthasasi, the SEC suspended them for one month, while the agency publicly reprimanded Pantaraksa with a record of demerit for future reference if another breach of duty is found. 

Meanwhile, Pongpat’s case was a referral from the Stock Exchange of Thailand concerning derivatives trading of a client of Kasikorn Securities. 

The securities firm’s investigation found that Pongpat had been taking care of an account where trading had been made with quite a high frequency and volume without any record of the client’s trade order for three months. 

Pongpat admitted to giving advice and taking the client’s trade orders via a mobile phone.

 

Failure to record 

In the case of Suntaree, a routine inspection showed her failure to record some of her advice and clients’ securities trading orders. She also admitted taking such orders via a mobile phone.

The actions of both Pongpat and Suntaree were found to be in violation of SEC regulations. 

The SEC therefore suspended Pongpat from performing the duty of investment analyst and investment consultant for three months, while Suntaree has been suspended from performing the duty of investment consultant for one month.

“Nowadays, some investors do not realise that it is not permissible for an investment consultant, with or without authorisation from investors, to make decisions in securities and/or derivatives trading on behalf of them,” SEC deputy secretary-general Vasant Thienhom said yesterday. 

“An investment consultant’s scope of duty is to contact and provide investors with investment advice or planning, while investors are responsible for making 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 the channel for fraud or embezzlement related to investors’ assets.”