The SEC’s investigation revealed evidence that, during 30 June – 31 July 2021, Miss Theeranuch had placed more than 200 securities trading orders on behalf of a client without recording the sources of those trading orders. Krungthai XSpring previously detected similar conduct of Miss Theeranuch in placing multiple trading orders and issued warnings or imposed disciplinary measures. However, such misconduct was detected again.

Miss Theeranuch’s actions constitute a failure to perform duties with responsibility and professional due care, which is deemed 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 an investment consultant for complex instruments type 1** for a period of three months and 22 days, effective from 22 November 2024.***

In determining prohibited characteristics and periods of approval suspension or revocation of capital market business personnel, 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. 

Securities companies are required to record the sources of securities trading orders and to supervise and ensure that their investment consultants comply with such duty. This serves as evidence that transactions are carried out in accordance with clients’ instructions and enables the company to demonstrate clients’ order-placement behavior, as well as the performance of the investment consultants. Failure to record the sources of trading orders may therefore provide a channel for concealing inappropriate securities trading orders. In all cases, the SEC closely monitors securities companies to ensure strict compliance with these requirements.

Notes:

* Failure to comply with 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. TorLorThor. 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. TorLorThor. 48/2560 Re: Rules on Personnel in the Capital Market Business (No. 7), dated 30 August 2017.

** 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.

*** Miss Theeranuch is not allowed to perform duties as an investment consultant for three months and 22 days, effective from 22 November 2024.