Bangkok, 3 August 2023 –  SEC has ordered a revocation of an investment consultant approval on Mr. Teerasak Tipboonsri for 10 years for failure to perform duties with loyalty, misappropriating client assets for personal gains by having his clients transferred payment for subscription of mutual fund investment units as well as their deposits into his own account. At the time of his wrongdoing, he was employed by the Kiatnakin Phatra Bank Public Company Limited.

 The Securities and Exchange Commission (SEC), with the inspection reports submitted by the Kiatnakin Phatra Bank PLC and the SEC’s further investigation, has found that between 2021-2022 Teerasak had his clients transferred money into his own bank account and/or had their cash exploited, having them informed that such money was for the purchase of mutual fund units on their behalf. However, the money was, in fact, not used for the buying transactions as per clients’ orders, but for Teerasak’s personal matters instead. In this connection, related mutual fund investment documents were counterfeited to make believe that the clients’ orders had been executed. Teerasak also invited his clients to open bank savings accounts with him and have their money transferred into his personal account without any client transactions executed as ordered. Teerasak’ acts had caused damage in the amount totaling 980,000 baht to his six clients, all of which were completely compensated.

Teerasak’s misconduct of misappropriating clients’ assets and acting in the manner that implies dishonesty, is deemed failure to perform duties or provide services with loyalty, affecting the reliability of capital market business personnel in a significant manner, which is considered a prohibited characteristic of the capital market business personnel under the provisions of the Notification of the Capital Market Supervisory Board*. The SEC therefore revoked the approval of Teerasak as an investment consultant for complex products Type 2 (IC complex 2**) and specified a period during which his resubmission for an application for an approval as a capital market business personnel would not be accepted for a period of 10 years, effective from 4 August 2023.***

In deliberating the imposition of administrative sanctions above, the SEC has taken into account the following factors, i.e. relevant roles and demeanors of the person under consideration, other penalty that he/she has already served, the impact, damage or benefits incurred from the facts or demeanors under consideration, rectifications or other acts that benefit or impede the SEC’s proceedings, and records or any other past demeanors which indicate inappropriateness to be personnel in the capital market business.

Investors are strongly advised to immediately check mutual fund trading transactions executed and regularly look into the mutual fund unitholding reports as well as related bank accounts. Moreover, investors should transfer investment money only into the account of the business operator and not to the IC’s personal account and should not put into the IC’s keeping important investment documents, e.g., an order form signed in advance.

In case of any doubts or inquiries, investors should contact the business operator or the “SEC Help Center” via telephone hotline 1207, SEC Facebook page or SEC Live Chat on the SEC web site.

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Remarks:
* Clause 23(1) refers to the prohibited characteristics of the personnel in the capital market business under Clauses 31(1) and 31(3) 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 products Type 2 is allowed to give investment advice on all types of non-complex capital market products and complex or high-risk debt instruments or investment units, 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.

***Teerasak’s application for obtaining SEC approval to be personnel in the capital market business during the period of 10 years starting from 27 September 2023 will not be accepted.