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SEC suspends a capital investment consultant



Monday 16 March 2015 | No. 33 / 2015



Bangkok, March 16, 2015 ? The SEC suspended Napat Pipattaraauksorn, a capital investment consultant, for trading securities and derivatives on behalf of clients, failure to perform duties with honesty by disguising that trading decisions were not actually made by clients; and receiving orders from persons not the owner of securities trading accounts. He was an employee of Tisco Securities Company Limited while the misconduct occurred.

Following the inspection report of Tisco Securities Company Limited, the SEC further probed into the case and found that Napat submitted a number of securities and derivatives trading orders for several clients without sources of orders. From the recorded conversation, it was found that Napat contacted some persons and asked for permission to submit securities and derivatives trading orders to make up the record of receiving those orders.  In addition, Napat had been authorized by a client to make securities trading decisions and he confirmed the trading transactions to some clients. All the said clients acknowledged trading transactions without any objection. Besides, Napat received several trading orders from the persons not the owner of the securities trading accounts with permission of the account owners. However, the account owners did not authorize those persons in writing.

Trading securities and derivatives on behalf of clients and receiving orders from any person not the owner of securities trading accounts were failure to perform duties with responsibility and due care as the capital market professional, disguising that trading decisions were not actually made by clients were in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended Napat from his duty as the approved capital market investment consultant for 11 months. Having considered that he had already been suspended by Tisco Securities Securities for three months, the suspension imposed by the SEC shall remain 8 months, effective from March 17, 2015.

*Clauses 20(1) and (2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012 which was prohibited characteristics of personnel in the capital market business under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 re: Prohibitions for Personnel of Business Operators dated September 15, 2010. The actions were in violation of Clauses 23(1) and (2) and the prohibited characteristics of the personnel in the capital market business under Clause 31(1) of the Notification of Capital Market Supervisory Board No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014 which has been promulgated in replacement of the said two notifications.












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No. 33 / 2015 Monday 16 March 2015
SEC suspends a capital investment consultant


Bangkok, March 16, 2015 ? The SEC suspended Napat Pipattaraauksorn, a capital investment consultant, for trading securities and derivatives on behalf of clients, failure to perform duties with honesty by disguising that trading decisions were not actually made by clients; and receiving orders from persons not the owner of securities trading accounts. He was an employee of Tisco Securities Company Limited while the misconduct occurred.

Following the inspection report of Tisco Securities Company Limited, the SEC further probed into the case and found that Napat submitted a number of securities and derivatives trading orders for several clients without sources of orders. From the recorded conversation, it was found that Napat contacted some persons and asked for permission to submit securities and derivatives trading orders to make up the record of receiving those orders.  In addition, Napat had been authorized by a client to make securities trading decisions and he confirmed the trading transactions to some clients. All the said clients acknowledged trading transactions without any objection. Besides, Napat received several trading orders from the persons not the owner of the securities trading accounts with permission of the account owners. However, the account owners did not authorize those persons in writing.

Trading securities and derivatives on behalf of clients and receiving orders from any person not the owner of securities trading accounts were failure to perform duties with responsibility and due care as the capital market professional, disguising that trading decisions were not actually made by clients were in violation of the Notifications of Capital Market Supervisory Board concerning personnel in the capital market*, the SEC therefore suspended Napat from his duty as the approved capital market investment consultant for 11 months. Having considered that he had already been suspended by Tisco Securities Securities for three months, the suspension imposed by the SEC shall remain 8 months, effective from March 17, 2015.

*Clauses 20(1) and (2) of the Notification of Capital Market Supervisory Board No. TorLorThor. 3/2555 re: Approval for Personnel of Business Operators to Perform Duties of Analyzing Investment and Giving Investment Advice dated January 18, 2012 which was prohibited characteristics of personnel in the capital market business under Clause 6(1) of the Notification of Capital Market Supervisory Board No. TorThor/Nor/Khor. 37/2553 re: Prohibitions for Personnel of Business Operators dated September 15, 2010. The actions were in violation of Clauses 23(1) and (2) and the prohibited characteristics of the personnel in the capital market business under Clause 31(1) of the Notification of Capital Market Supervisory Board No. TorLorThor. 8/2557 re: Regulations for Personnel of Business Operators in the Capital Market dated June 3, 2014 which has been promulgated in replacement of the said two notifications.