Bangkok, 20 October 2016 - The SEC has suspended approval of 11 investment consultants of six securities companies for soliciting investors to purchase IPO and over-the-counter shares to seek personal benefits from the margins of the offer prices.    

According to the findings of the SEC investigative team, 10 of the 11 investment consultants solicited several clients to invest in IPO shares to seek personal gain from the margin of such offering and trading transactions. However, the clients who had paid for their orders did not receive the purchased shares or such shares did not exist in the first place. The clients therefore suffered damage.

The 10 investment consultants worked for five securities companies, namely: (1) Capital Nomura Securities Public Company Limited, (2) Kasikorn Securities Public Company Limited, (3) Globlex Securities Company Limited, (4) Maybank Kim Eng Securities (Thailand) Public Company Limited, and (5) AEC Securities Public Company Limited. 

In the case of the other investment consultant, the SEC received complaints from several clients of Bualuang Securities Public Company Limited and conducted further investigation which revealed that {A}, a capital market investment consultant, had solicited the clients to purchase over-the-counter shares of a public company that he claimed to be listed on the Stock Exchange of Thailand (SET) later. He gained a margin from the solicitation when in fact the public company did not even file an application for share offering, thus never listed on the SET as previously claimed. The clients suffered damage as a result.   

The misconducts of the 11 investment consultants were deemed a failure to perform duties or provide services honestly as they sought to gain personal benefits from investors through their job operation, or a violation of the Notification of the Capital Market Supervisory Board * The SEC therefore has suspended their approval as investment consultant, with details as follows:

Capital Nomura Securities:    
 (1) {B}, capital market investment consultant, is suspended for two years;
 (2) {C}, securities investment consultant, is suspended for 18 months;
 (3) {D}, capital market investment consultant and investment planner, is suspended for eight months;
 (4) {E}, securities investment consultant and investment planner, is suspended for one year.

Kasikorn Securities:
 (5) {F}, capital market investment consultant, is suspended for one year;
 (6) {G}, capital market investment consultant, is suspended for four months;
 (7) {H}, capital market investment consultant, is suspended for four months;

Globlex Securities:
 (8) {I}, securities investment consultant, is suspended for one year.

Maybank Kim Eng Securities:
 (9) {J}, capital market investment consultant, is suspended for eight months. However, she has already been suspended by her employer for six months. The SEC thus ordered another two months? suspension to complete the term.  

AEC Securities:
 (10) {K}, capital market investment consultant and investment planner, is suspended for eight months. However, she has already been suspended by her employer for three months. The SEC thus ordered another five months? suspension to complete the term.

Bualuang Securities:
 (11) {A}, capital market investment consultant, is suspended for six months.

The suspensions on the investment consultants No. 1, 2 and 11 took effect on 18 October 2016, while No. 3 to 10 took effect on 21 October 2016. 

Investment consultants must not abuse their duties to seek unfair benefits from investors no matter with or without clients? consent. In any case, the SEC takes strict action against all offenses. 

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*Violation of Clause 23(1) under the Notification of the Capital Market Supervisory Board No. Tor Lor Thor 8/2557 Re: Rules on Capital Market Business Personnel dated 3 June 2014, which is deemed a prohibited characteristic of capital market personnel pursuant to Clause 31(1) of the said Notification.