Watchdog supports Asia Plus' discipline of investment consultant

However, taking into account that she has already been suspended by her employer for three months, the suspension imposed by the SEC is deemed to have been served.

Following up on a report from Asia Plus, the SEC found that Thannaphat had been authorised by her client to make derivatives-trading decisions on the client’s behalf. The client was informed of derivatives price ranges in advance and when the prices moved within those ranges, Thannaphat executed trading orders.  

She sometimes sent trading orders and informed the client afterward. Thannaphat admitted that she had continually talked with the client about support and resistance lines of the derivatives prices and also informed the client of trading results via e-mail. The client never objected to the transactions and permitted Thannaphat to continue trading in attempt to recover losses incurred in the trading account.

In performing their duties, investment consultants can send trading orders only after obtaining clients’ instructions. They cannot make trading decisions of securities and derivatives on behalf of clients, regardless of the client’s permission.  

The SEC therefore imposed a concurrent suspension on Thannaphat from duties as an approved derivatives-investment consultant for a period of one month.