According to a report submitted by RHB in early 2021 regarding suspicious conduct by investment consultants at one of its branches, it was found that trading orders had been placed for futures contracts referencing the share price of a listed company traded on the Stock Exchange in large volumes, in the form of Single Stock Futures Block Trade (SSF Block Trade), without any underlying client instructions. The transactions were intended to allocate the resulting profits and losses to other clients’ accounts.  

As a result of the above incident, the SEC conducted an inspection of SSF Block Trade transactions at RHB and found that, from January 2019 to December 2020, six investment consultants of RHB— (1) Mr. Pongpat Thavisomboon, (2) Mr. Yodsawat Pisiviroj, (3) Mr. Yodsapol Pisiviroj, (4) Mr. Nuttapon Teachasittichai, (5) Mr. Thanakorn Chongsuksirichok,  and (6) Mr. Torpong Krithayakrien— engaged in SSF Block Trade transactions with the cooperation or assistance of five investment consultants who acted as traders, namely (7) Miss Purichita Sukhonpitumart, (8) Mr. Phuwit Pongchaloem, (9) Miss Walaithip Rungrojjanatorn, (10) Mr. Chotiwit Jiratananuwong, and (11) Miss Kottchaphon Aroonthasiri. The transactions were carried out by using RHB’s proprietary trade account to trade for themselves or for others, with the objective of evading regulatory requirements for protecting investors’ assets or interests, or of using such account as a channel for seeking benefits for themselves or others. 

Upon consideration, the SEC found that the conduct of the six investment consultants of RHB Securities (Thailand) constituted a failure to perform their duties or provide services with honesty and good faith. Specifically, they executed transactions using the company's investment account to trade for themselves or other persons, with the company's consent, with the intention of evading regulations established to protect investors' assets or interests, or as a channel for seeking personal gain or benefits for others. Such conduct constitutes a prohibited characteristic of capital market business personnel under the relevant Notification of the Capital Market Supervisory Board.* The SEC has therefore revoked the approvals of these investment consultants and/or imposed bans on their future applications for approval as capital market business personnel for specified periods,** as the case may be, as follows:

          (1) Mr. Pongpat, an investment consultant for complex instruments type 1, fundamental securities investment analyst, and branch manager at the time of the misconduct, received a revocation of approval for a period of four years and 12 months, effective from 13 December 2023;  
          (2) Mr. Yodsawat, an investment consultant for complex instruments type 1, received a revocation of approval for a period of two years and six months, effective from 18 December 2023;
          (3) Mr. Yodsapol, an investment consultant for complex instruments type 1, received a revocation of approval for a period of two years and six months, effective from 18 December 2023;
          (4) Mr. Nuttapon, an investment consultant for complex instruments type 1, received a revocation of approval for a period of two years and six months, effective from 18 December 2023;
          (5) Mr. Thanakorn, an investment consultant for complex instruments type 1, received a revocation of approval for a period of two years and six months, effective from 13 December 2023;
          (6) Mr. Torpong, an investment consultant for complex instruments type 1, received a revocation of approval for a period of two years and six months, effective from 13 December 2023.

Regarding the conduct of the five investment consultants of RHB who acted as traders, their actions constituted participation in, or support of, the aforementioned six investment consultants’ commission of offenses, which constitutes a prohibited characteristic of capital market business personnel under the relevant Notification of the Capital Market Supervisory Board.*** The SEC has therefore suspended the approvals of these investment consultants and/or imposed bans on their future applications for approval as capital market business personnel for a period of one year and three months, as the case may be, as follows:
          (7) Miss Purichita, an investment consultant for complex instruments type 1 and investment planner, effective from 18 December 2023;
          (8) Mr. Phuwit, an investment consultant for complex instruments type 1, effective from 13 December 2023;
          (9) Mr. Walaithip, an investment consultant for complex instruments type 1, effective from 18 December 2023; 
          (10) Mr. Chotiwit, whose approval as an investment consultant for complex instruments type 1 had expired on 31 December 2021, has been imposed with a ban on future applications for approval as capital market business personnel for a period of one year and three months, effective from 13 December 2023; 
          (11) Miss Kottchaphon, an investment consultant for complex instruments type 3, effective from 18 December 2023.

In addition, from the SEC's examination of SSF Block Trade transactions, it was also found that during January – December 2020, Miss Phatsasi Thavibhumnund (formerly known as Miss Pornpimol Tungkitisatian), an investment consultant of Pi Securities Public Company Limited (Pi Securities), conducted SSF Block Trade transactions with the purpose of evading key regulations to assist her own clients, by opening and closing futures contract positions with two clients within the same day; this allowed the clients to avoid posting collateral as required by Pi Securities, or being subject to forced position closure by Pi Securities when unable to place additional collateral.

Upon consideration, the SEC found that the conduct of Miss Phatsasi constituted a failure to perform her duties or provide services with responsibility and professional due care, by executing trading transactions with the purpose of evading key regulations to assist clients, which constitutes a prohibited characteristic of capital market business personnel under the relevant Notification of the Capital Market Supervisory Board.**** The SEC has therefore suspended her approval as investment consultant for complex instruments type 1 and fundamental securities investment analyst for a period of six months, effective from 18 December 2023.

With respect to the relevant operational systems of RHB and Pi Securities, the SEC imposed fines on both companies in August 2022.

In determining administrative sanctions on investment consultants, 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 urges securities companies to strictly control and supervise their investment consultants in conducting SSF Block Trade transactions between the companies' investment accounts and client accounts under the investment consultants' care, in accordance with company policies, and to prevent conflicts of interest in relation to such transactions. Additionally, the SEC reiterates that investors should not place undue trust in, support, or assist investment consultants in using their trading accounts for the benefit of the consultants themselves or others, and should regularly monitor their trading accounts to prevent any unauthorized use. Should any suspicion arise, investors should contact their service providers, or make inquiries to the SEC Complaint Center via Hotline 1207, the SEC’s official Facebook Page: "สำนักงาน กลต.", or SEC Live Chat on the SEC website.

Notes:

* 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.

** Applications for approval as capital market business personnel submitted during the suspension or revocation periods will not be accepted.

*** 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.

**** Clause 23(2) 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 planner refers to a person providing investment consultation to investors and being allowed to make an investment plan in conjunction with such consultation by incorporating in-depth information on each client in order to specifically plan and provide investment consultation on capital market products in line with the risk tolerance and the investment objective of each client.  

Investment Consultant for Complex Instruments Type 1 refers to a person allowed to provide investment consultation on non-complex capital market products and all classes of 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, structured notes, and derivatives.

Investment Consultant for Complex Instruments Type 3 refers to a person allowed to provide consultation on capital market products having high-risk or complex characteristics only specifically to derivatives under the Law on Derivatives.

Fundamental Securities Investment Analyst refers to a person providing investment consultation to investors and eligible to conduct an investment analysis as part of such consultation, which includes analyzing or providing recommendations on the value or suitability for trading or investing in capital market products.