According to the complaint handling report submitted by TMB and SEC’s further investigation, it was found that during August – September 2017, {D} and {A} jointly sold funds to a client. {D} forged the client’s investment suitability test and ordered {B} to open a fund account under the client’s name as well as withdraw 1 million baht from the client’s savings account to buy such funds. {A} assured his colleague that it was the client’s decision. Therefore, the transaction had been executed. However, when the authorization documents were brought to the client for signature, the client denied the authorization of the whole arrangement. {D} and {A} subsequently entered into an agreement with the client whereas the client agreed to formalize the past buying transaction by signing the relevant documents and then immediately order to sell the entire fund from the account. {D}, on the other hand, agreed to make whole to the client by compensating all loss incurred from that unauthorized investment.  

The conducts of all three contravened rules and regulations set forth in the Notification of the Capital Market Supervisory Board. In particular, both {D} and {A} failed to properly discharge their profession duties with loyalty* by making unauthorized investment without client’s permission, and order or consent on making fake documents. While {B} failed to properly discharge his professional duties with responsibility and care** by signing the documents knowing that no actual service was provided. SEC, therefore, orders the following administrative sanctions: 

            (1) {D}: considering the level of her wrongful conduct, her status as an approved securities investment consultant should be revoked. However, since the said status had already expired on 31 December 2019. SEC, therefore, bars {D} from re-entry capital market business for two years and eight months, starting from 18 December 2020. During this period, {D} will not be able to perform duties as a branch manager or equivalent positions in the capital market business;  

            (2) {A}: his status as an approved investment consultant for Complex Financial Products Type 2 is revoked and he will be barred from working in capital market business for one year and four months, starting from 23 December 2020; and

            (3) {B}: his status as an approved investment consultant for Complex Financial Products Type 2 is suspended for two months, starting from 18 December 2020. 

TMB itself had already terminated the employment of all three investment consultants. {D} and {A} were dismissed without compensation. Other employees involved in this incident were also disciplined by TMB for failing to comply with bank’s operating procedures.  

In considering the appropriate administrative sanction, SEC takes into account the following factors: the involvement and behavior of each person under consideration; the penalty he/she has already served; the impacts, loss or benefit incurred; any steps taken to rectify past conduct; the cooperation or obstruction with SEC’s investigation; and any previous record or past behavior which indicating that the subject person is not fit and proper to work in capital market business***. 

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Remark: 

* Pursuant to Clause 23(1) and the prohibited characteristics of personnel in the capital market business 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 (Notification No. Tor Lor Thor. 8/2557), 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 (Notification No. Tor Lor Thor. 8/2557 as amended) and unable to perform duties as a branch manager or equivalent positions in the capital market business in accordance with the Clause 30(4) of the Notification No. Tor Lor Thot. 8/2557 as amended. 

** Clause 23(2) and the prohibited characteristics of personnel in the capital market business in accordance with Clause 31(1) of the Notification No. Tor Lor Thor. 8/2557 as amended. 

** Clause 36 of the Notification No. Tor Lor Thor. 8/2557.