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SEC imposes a 10-year revocation of approval on an investment consultant for misappropriating clients’ money



Friday 3 January 2020 | No. 2 / 2020


Bangkok, 3 January 2020 – The SEC has revoked the approval of investment consultant for Ms. Vanatsavadee Phothong, and prohibited her from being capital market business personnel for 10 years, on account of misappropriating clients’ money for investment unit subscription and making false evidence. She was acting branch manager of Bank of Ayudhya Public Company Limited at the time of committing the offenses.

Following an inspection report from Bank of Ayudhya, a limited broker dealer and underwriter (LBDU) licensee, and SEC’s further investigation, it was found that Vanatsavadee, securities investment consultant, had misappropriated clients’ money by withdrawing money from the clients’ banking accounts  without executing the transactions that the clients had made. Besides, she made false evidence by forging the clients’ handwriting, subscription orders and switch orders or unitholders’ account books, causing damage to four clients at the total amount of 10.44 million baht.

The SEC has considered that Vanatsavadee failed to perform duties or give services honestly. In addition, there was a reason to believe that she had failed to perform duties or provide services properly* and concealed wrongful acts while holding the position of acting branch manager at the bank.** The SEC has therefore revoked the approval as an investment consultant, which consequently disqualified her from performing duties as capital market personnel for 10 years, effective from 6 January 2020 onwards.

Investors are strongly advised to be careful in their fund investment and request transaction evidence issued by banks or asset management companies, as well as update their fund books (if any) on the following business day to prevent damage from possible frauds. 

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* Clause 23(1) and prohibited characteristics of personnel in capital market business under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Personnel in the Capital Market Business dated 3 June 2014, as amended by the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560 Re: Rules on Personnel in the Capital Market Business (No. 7) dated 30 August 2017.

** Having prohibited characteristics in Group 2 under Clause 30(4)(a) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Personnel in the Capital Market Business, as amended. (Executives are subject to penalties twice as higher than those imposed on investment consultants).