Stock watchdog imposes suspensions on three investment consultants for improper behaviour

Chalermchai Panyavachilokul of Bualuang Securities was suspended for two months, Kunnika Anukulwittaya of RHB OSK Securities (Thailand) for one month, and Prakarn Sripalakit, a former investment consultant of Kiatnakin Securities Co, for three months. 

In the case of Chalermchai, the SEC found that he had taken trading orders from a person being neither the account owner nor the account owner’s appointee. In addition, he provided a client’s trading information to another client, as well as frequently failing to keep records of his investment advice and the clients’ trade-order instructions. He admitted that he had advised his clients and taken orders via mobile phone.

Moreover, he was earlier warned and punished by his employer Bualuang Securities twice for failing to keep records of his investment advice and clients’ instructions regarding derivatives trade orders. The SEC suspended him from duty as an approved capital-market investment consultant for a period of two months. Taking into account that he has already been suspended by his employer for five days for the recent misconduct, the suspension imposed by the SEC shall remain for one month and 25 days, effective from May 1. 

With regard to the Kunnika case, on investigation of an investor complaint, the SEC found that she had been authorised to make securities-trading decisions on behalf of the client from the account’s opening. Kunnika admitted that she made trading decisions on behalf of the client upon the request to take care of the trading account. She also sought assistance from a team member, an investment consultant in the team who was in charge of this client’s account, to execute the trading orders and inform the client of the transactions afterwards. It was found that the client acknowledged the transactions without any objection. 

The Prakarn case follows an investor complaint and a report from Kiatnakin Securities indicating that he had been authorised to make securities-trading decisions on behalf of the client. For a period of about two months, he regularly traded securities, in fact almost every day, resulting in a high trading volume. 

Prakarn admitted that the client permitted him to make trading decisions without the client’s confirmation or with post-trading confirmation. In this regard, recorded conversations corresponded to his admission. It was also found that the client acknowledged the transactions via text messages all along and consistently accessed the company’s system to review the trading information without any objection. 

The actions of Kunnika and Prakarn were deemed as obtaining authorisation from a client to make securities-trading decisions on behalf of said client in violation of SEC regulations. 

The commission therefore suspended both from duty as approved securities investment consultants for a period of one month and three months respectively, effective from May 1.