‘SEC’ downed ‘investment advisor’ for exploitation but does not provide proper information-advice.
SEC suspends approval of investment advisor and investment planner Ms. Rutairat Klinthong for 10 months in case of seeking benefits from investors and without providing appropriate information or advice while committing an offense under MFC Asset Management Public Company Limited
The Securities and Exchange Commission (SEC) received complaints and investigated additional information. Ms. Rutairat is an intermediary in the offering of debentures of foreign companies. The debentures were not offered for sale through MFC Asset Management Public Company Limited and Ms. Rutairat stated that it was done on her own behalf.
From the facts, it can be considered that Ms. Ruthairat Has behavior to exploit investors by taking advantage of the opportunity to work as a coordinator between the buyer and seller of the bonds The benefit was received as compensation from the seller of debentures amounting to 3 million baht and did not provide appropriate information or advice. (suitability) to investors in full, accurate, including not giving information or warnings which may affect the interests of investors which later When the bond buyer does not receive the required interest on the bond Ms. Rutairat contacted the issuer to inform that the company had not issued any debentures for sale. which shows that Ms. Rutairat as an investment advisor did not adequately act as a professional practitioner. If Ms. Rutairat checks such information before giving advice, it may not cause any damage to customers.
Such action is considered to be a non-performance or service with honesty. and does not perform duties or provide services with responsibility and prudence like a professional according to the Notification of the Capital Market Supervisory Board*, the SEC has therefore suspended its approval of being an investment advisor in Complex Instruments Class 2** and Ms. Ruthairat’s investment planner for 10 months, effective from June 1, 2021. However, due to the approval period as Ms. Ruthairat’s Class 2 Complex Instruments Investment Advisor has expired on On March 31, 2021, the SEC has set a period for the next 10 months for the approval request to be a personnel in the capital market business from June 1, 2021.
In determining the penalty, the SEC has taken into consideration the following factors: roles, relationships and behaviors of persons being considered. the punishment that the person has already received the effect, damage or benefit incurred Amendments or other actions that benefit or hinder the performance of the SEC and any other history or past behavior that indicates inappropriateness to be a personnel in the capital market business.
Remark *Failure to perform duties or provide services with honesty under Clause 23(1) and failure to perform duties with responsibility and prudence as professional practitioners under Clause 23(2), which are prohibited characteristics of personnel in the capital market business under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. TorLorThor. 8/2014 Re: Rules on Personnel in Capital Market Business dated 3 June 2014 as amended by the Notification of the Capital Market Supervisory Board No. ThorThor. 48/2560 Re: Criteria on Personnel in the Capital Market Business (No. 7) dated August 30, 2017.
**Sophisticated Instrument Class II Investment Advisor means an investment advisor who advises investors in uncomplicated capital market products. and investment units or debt instruments with high risk or complexity, such as investment units of mutual funds offered to institutional investors or ultra-high net worth investors. Investment units of mutual funds that are invested in futures contracts Semi-debt, semi-equity and bonds with hidden derivatives
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