Following the complaints filed with the SEC by seven investors, it was found that during 30 August 2021 – 16 November 2022, they invested in debt instruments issued and offered for sale to institutional investors and/or high-net-worth investors through Miss Tunyaporn. She engaged in contacting, soliciting, and offering such debt instruments to the seven investors without verifying their qualifications and/or without requesting complete documentary evidence to substantiate their status as high-net-worth investors in accordance with the debt offering regulations. Moreover, she prepared false documentation regarding the investors’ qualifications as high-net-worth investors for use in support of their investment in the debt instruments, and submitted such documentation to Maybank Securities (Thailand). As a result, the investors were deemed to meet the qualifications of high-net-worth investors eligible to invest in the said debt instruments. Consequently, Miss Tunyaporn received remuneration during the relevant period totaling 30,000 baht, which constituted a benefit improperly obtained, as the investors did not in fact meet the qualifications of high-net-worth investors.

The SEC considered that Miss Tunyaporn’s aforesaid conduct constituted a failure to perform duties or provide services with honestly and good faith by abusing her duties to seek benefits for herself, and a failure to perform duties with responsibility and professional due care by giving false information or preparing false documentation. Such conduct is deemed prohibited characteristics of personnel in the capital market business under the relevant Notification of the Capital Market Supervisory Board*. The SEC has therefore revoked her approval as an investment consultant for complex instruments type 1** and imposed a ban on accepting her future applications for approval as capital market business personnel for a period of three years, effective from 19 December 2024***.

In determining administrative sanctions, 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

The SEC reiterates that investors should carefully select debt instruments that are suitable for their risk profile, taking into account their own qualifications to ensure consistency with the type of debt instruments offered. For investment consultants who are responsible for contacting and offering debt instruments to investors, the SEC emphasizes that they must verify investors’ qualifications and obtain complete documentary evidence of such qualifications on every occasion, in order to ensure that the offering and investment consultation are suitable for each investor. 

Notes: 

* Clause 23(1)(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 who is allowed to give investment consultation on all types of 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, structured notes, and derivatives.

*** Miss Tunyaporn’s applications for approval as capital market business personnel submitted during the three-year period, effective from 19 December 2024, will not be accepted.