Bangkok, 15 March 2017 - The SEC has suspended the approval of two securities investment consultants, {A} and {B}, for failing to perform duties with responsibility and deliberation as a professional for a period of four months and 40 days, respectively.

In the case of {A}, who was a securities investment consultant and a branch manager at KASIKORNBANK Public Company Limited (KBANK) while committing misconduct, an inspection report from the bank and the SEC's further investigation have revealed that she solicited an elderly customer to invest in a mutual fund unsuitable for the customer's profile; although the customer had never invested in a mutual fund before and could not afford to lose the principal, {A} allocated almost half of the customer's total assets in a mutual fund of a higher risk level than what the customer could tolerate.

In the case of {B}, who was a securities investment consultant at Thanachart Bank Public Company Limited (TBANK) at the time of misconduct, the SEC received a complaint from an investor and further investigated the case. It was revealed that she failed to make a risk tolerance assessment before soliciting the investor to buy units of mutual funds.

In addition, {B} did not inform nor have the customer sign to confirm unit purchase orders inconsistent with the customer's risk profile. Moreover, she misled the customer into believing that an estimate return rate was guaranteed while in fact such rate was only a condition for auto redemption, not an estimate return. In any case, TBANK has already paid a compensation for the damage incurred to the customer.

The demeanors of {A} and {B} were deemed a failure to perform duties with responsibility and deliberation as a professional in contravention of the Notification of the Capital Market Supervisory Board*.

The SEC has therefore suspended the approval of {A} as a securities investment consultant and banned her from performing duties as a branch manager in business related to capital market for four months, starting from 6 March 2017.

Meanwhile, the SEC has suspended {B} for 40 days, but as TBANK has already put her on a one-month suspension starting from 3 March 2017, the SEC suspension will continue for 32 more days starting from 11 March 2017.

The SEC urges investment consultants to give advice and offer investment products to investors with responsibility and deliberation by taking into account customers? profile, from education, experience, investment goals, investment conditions and restrictions. It is important for investment consultants to exercise due care and clearly explain risk factors involved in mutual fund investment before soliciting customers, especially the elderly aged 60 years old or more and inexperienced investors, to invest in fund products suitable for their risk profile.

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Note:
* Clause 23(2), which specifies a prohibited characteristic of capital market 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.