Detail Content
Enforcement
Administrative Actions
Administrative action is a type of law enforcement that involves the issuance of administrative orders on individuals or juristic persons under the SEC's supervision, in other words, persons licensed, approved, or registered in accordance with the laws administered by the SEC. For example, securities business operator, derivatives business operator, financial advisor, auditor, appraisal company, credit rating agency, representative of bond holders, and personnel in the capital market business, etc.
There are two types of administrative actions taken by the SEC Office, namely:
Administrative order issued in accordance with the governing laws when a regulated person fails to maintain qualifications, has a prohibited characteristic, performs duties defectively, or fails to comply with the rules, standards or work ethics specified for the regulated person. The SEC or other regulators may impose the following orders: rectification of non-compliance operation, restriction of defective business operation, disclosure of improper behaviors, and suspension or revocation of approval, etc.;
Administrative sanction is a type of penalty prescribed in the Derivatives Act and the Trust for Transactions in Capital Market Act. It may be imposed on derivatives business operators, futures exchange, derivatives clearing house, the association of derivatives business operators, persons who fail to pay the fees specified under the Derivatives Act, directors and executives of the juristic persons above (under Section 114 – Section 119 of the Derivatives Act) and the trustee and directors and executives thereof (under Section 70-71 of the Trust for Transactions in Capital Market Act).
There are several levels of administrative order issuers, i.e., the SEC, the Administrative Sanction Committee and the Securities and Exchange Commission Board. Likewise, the orders can be imposed in many ways, for example, probation, public reprimand, administrative fine, restriction of business operation, business suspension and license revocation, etc. In this regard, the scope of power of the order issuers varies depending on the level of penalty to be imposed on the offender.
Appeal
Any person who is affected by, and disagrees with, an administrative order has the right to appeal such order. The appeal procedure is provided by the SEC Regulation concerning Filing, Considering and Making a Decision on the Appeal of the Administrative Orders of the SEC Office B.E. 2542 (1999), and the SEC Notification No. Gor Kor. 12/2551 Re: Administrative Procedures under the Derivatives Act B.E. 2546 (2003), and the Trust for Transactions in Capital Market Act B.E. 2550 (2007). More details are available in the following flowchart: