Bangkok, Friday 18 October 2019 - SEC has suspended the approval of three investment consultants, namely, (1) {A}, (2) {B} and (3) {C}, for two months for failing to perform duties with responsibility and professional due care. They all worked as investment consultants on complex instrument type 2* at Siam Commercial Bank Public Company Limited when the misconduct was committed.
Following an inspection report from SCB, which is licensed to
operate securities business as a Limited Broker Dealer and Underwriter (LBDU)
of investment units, SEC conducted a further inquiry and found that the
aforesaid investment consultants proceeded with the redemption of long-term
equity fund (LTF) units for clients in breach of the conditions for receiving tax benefits despite
warnings from the Bank’s electronic trading system, thus causing damage to
clients. Details of the misconduct are as follow:
(1) In the case of {A}, she was found to fail to examine the correctness of processing and
confirming the redemption orders in violation of the tax terms;
(2) In the case of {B}, she was found to sign the redemption orders without double-checking
the correctness of processing and confirming the redemption orders in violation
of the tax terms;
(3) In the case of {C}, she was found to approve the redemption orders in the Bank’s investment
unit trading system without double-checking the correctness of processing and
confirming the redemption orders in violation of the tax terms.
SEC found the three investment consultants to have failed to perform duties
with responsibility and professional due care in contravention of Clause 23(2) and
to have possessed a prohibited characteristic according to Clause 31(1) of the Notification
of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557, as
amended by the Notification of the Capital Market Supervisory Board No. Tor
Lor Thor. 48/2560. SEC therefore ordered the approval of all three investment
consultants on complex instrument type 2 suspended for two months, effective
from 21 October 2019.
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*Investment consultant on
complex instrument Type 2 means an investment consultant who is able to provide consultation to
investors on capital market products not having
complex characteristics as well as the product having high-risk or complex
characteristics.