Following an inspection report from Bank of Ayudhya and the SEC’s further investigation, it was found that during 2022–2023, Mr. Sittipong wrongfully acquired assets of 11 investors, totaling 19,950,000 baht.*  He instructed clients to withdraw funds and hand over cash and/or transfer money into his bank account for the purpose of purchasing investment units, and had the clients sign subscription forms for such investment units. However, Mr. Sittipong did not execute the transactions in accordance with the clients’ instructions. He also prepared false investment reports and informed the clients of purported returns to make them believe that the investments had actually been made, thereby causing damage to the clients. Moreover, Mr. Sittipong deceived certain clients into continuing their investments by informing them that the investment units they held had matured, and having them sign unit-switching forms. Alternatively, when clients wished to redeem their investment units, Mr. Sittipong had them sign redemption forms and transferred money from his personal bank account into the clients’ accounts.

The SEC considered that Mr. Sittipong’s actions constituted misconduct involving failure to perform duties or provide services with honesty and good faith, resulting in the wrongful acquisition of clients’ assets. Such conduct was deemed prohibited characteristics of personnel in the capital market business pursuant to the Notification of the Capital Market Supervisory Board.** As a result, the SEC has revoked his approval as an investment consultant for complex instruments type 2*** and imposed a ban on accepting any future applications for approval as capital market business personnel for a period of 10 years, effective from 17 October 2024.****  

In determining the administrative sanction above, the SEC takes into account several factors, including the individual’s relevant roles and conduct; any penalties already imposed; the extent of damages or benefits resulting from the actions; any corrective measures or other actions that either support or hinder the SEC’s proceedings; and records or past demeanors indicating unsuitability to serve as personnel in capital market businesses. 

The SEC reiterates that investors should promptly verify completed unit subscription transactions against the transaction evidence issued by the relevant bank or asset management company, and regularly review their unitholding reports and bank account statements. In addition, any investment funds must be transferred only to the account of the relevant licensed business operator and not to the personal account of an investment consultant, in order to prevent potential losses arising from fraud. 

Notes: 
* As of now, 10 clients have already received refunds, and the bank is contacting and coordinating with the other client, who is currently overseas.
** Clause 23(1) is a prohibited characteristic of capital market business personnel 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. *** Investment Consultant for Complex Instruments Type 2 refers to a person who is allowed to give investment consultation on non-complex capital market products and complex or high-risk instruments, e.g., investment units of mutual funds offered to institutional or ultra-high net worth investors, investment units of mutual funds with investment in derivatives, hybrid securities, and structured notes.
**** Mr. Sittipong’s applications for approval as capital market business personnel submitted during the 10-year period, effective from 17 October 2024, will not be accepted.