Following the complaints from investors who were not clients of Bualuang Securities and the SEC’s further investigation, it was found that between March and May 2021, Mr. Vorrapote solicited investors to subscribe for initial public offering (IPO) shares of seven companies through his own securities trading account. Mr. Vorrapote claimed to have received IPO share subscription rights from Bualuang Securities, the company where he was employed, and requested that investors transfer funds into his personal bank account. It was subsequently found, however, that Mr. Vorrapote had not subscribed for the IPO shares on behalf of the investors. Although investors demanded clarification, Mr. Vorrapote repeatedly evaded their inquiries. After investors' formal complaints, Mr. Vorrapote returned the funds to them in full.

The SEC considers Mr. Vorrapote’s actions to be a failure to perform his duties with honesty and good faith, leading to his acquisition of investors’ assets unlawfully. Such conduct is deemed a prohibited characteristic for capital market business personnel under the Notification of the Capital Market Supervisory Board,* liable to revocation of approval as capital market business personnel for a period of three years and four months. However, his approval as an investment consultant for complex instruments type 1** has ended on 31 December 2021. The SEC has therefore imposed a ban on accepting any future applications for approval as capital market business personnel for a period of three years and four months, effective from 14 February 2023.

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 indicating unsuitability to serve as personnel in capital market businesses. 

The SEC urges investors to exercise caution and not to be misled by solicitations to trade securities through another person's account rather than their own, or solicitations to transfer funds for securities trading into the personal bank account of an investment consultant, as such practices may serve as a channel for fraudulent conduct and could result in significant financial loss.

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.

** Investment Consultant for Complex Instruments Type 1 is allowed to give investment advice on non-complex capital market products and all types 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.

*** Mr. Vorrapote’s applications for SEC approval to serve as personnel in the capital market business will not be accepted during the three-year-and-four-month period, starting from 14 February 2023.