The SEC ordered Asia Wealth Securities to prosecute Asia Wealth after temporarily suspending its business. Ready to order a refund within November 20, because the customer’s money is 157 million baht. P.O. Then, in the case of MORE shares defrauding brokers, informing AWS customers can transfer shares out. Ready to keep an eye on the broker’s financial position closely
From the case that the Securities and Exchange Commission (SEC) has found that Asia Wealth Securities Company has used customer money in the possession of the company to pay for the purchase of securities with the clearing house. whereby the customer has not ordered or consented to do so In the amount of 157.99 million baht until an order was ordered to temporarily suspend business operations.
The news report from the SEC said that such action It was a resolution of the Capital Market Supervisory Board (SEC) on November 17, 2022, due to the view that the operation of the company could cause serious damage to the public interest. therefore resolved by virtue of Section 143 of the Securities and Exchange Act B.E. 2535
(1) misuse the customer’s money that the company uses without the customer’s permission; Come back by Sunday, November 20, 2022.
(2) temporarily suspend the securities business Unless it is a transaction to hedge the overall risk of the Company’s investment or the performance of pending obligations. From Friday, November 18, 2022 onwards, until the company returns the customer’s money. and has been authorized by the SEC to conduct business as usual
(3) set up a work system to prevent the aforementioned incident from happening again; By Friday, November 18, 2022
(4) Facilitate the Company’s customers. so that the customer can carry out operations on the customer’s assets that are with the company according to the customer’s wishes within the time agreed upon with the customer
As for derivatives business, the SEC, by virtue of Section 50 of the Derivatives Act B.E. from Friday, November 18, 2022 as well, except for trading to clear the existing futures contract position until the company returns the customer’s money and has been authorized by the SEC to conduct business as usual Including requiring the company to proceed in accordance with items (1), (3) and (4) mentioned above as well.
SEC urgently declares that ASW has clearly violated the rules
Yesterday (November 18), Ms. Ruenwadee Suwanmongkol, secretary-general of the SEC, revealed that the order temporarily closed Asia Wealth Securities (AWS) due to company reports. together with the office The SEC went to inspect the company as well. It was found that part of the client’s account funds were used without permission. for the payment of securities
“The SEC found that part of the money was the customer’s money. It is clearly a violation of the rules. The said case is not related to the financial status of the company.” Secretary-General of the SEC said
However, after the unusual trading of shares of More Return Public Company Limited (MORE), the SEC considered this an urgent matter. therefore coordinating with the Stock Exchange of Thailand (SET) to investigate various securities companies However, apart from Asia Wealth Securities (AWS), it has not yet been found. Other securities companies of concern
“Now still have to wait for that. Will the company be able to return the money to the customer’s account on November 20 or not? Initially spoke with AWS executives, the company said that there are multiple channels in the pipeline. So will wait for that time first.” Miss Ruenwadee said
Criminal prosecution for violating the Securities and Exchange Act
however Improper use of customer funds is an offense under Securities and Exchange Act That will require criminal proceedings according to law. Will it lead to other offenses or other laws or not? must be considered in the next step.
The secretary-general of the SEC said that there are currently 3 major problems in the process due to the abnormal MORE stock trading, namely:
1. Considering whether the case occurred is fair or not according to Securities Act Separate from fraud that is subject to criminal law. Yesterday, there was a meeting with Pol. Lt. Gen. Jirapob Puridet, the commander of the Central Investigation Police (Criminal Investigation Command) in order to ask for cooperation.
2.Securities companies and the Stock Exchange of Thailand (SET) have their roles and duties performed according to the rules or not and how In the past, the SEC has continuously inquired and talked with entrepreneurs and
3. The SEC has a discussion with the SET about the quality of stocks. Especially small stocks, all 3 of which the SEC has done in the past 1 week.
Set up a special working group to inspect The cause is a broad impact.
In this regard, the SEC has set up a special working group to be the center of investigation to speed up the investigation. because it is an issue that has a wide impact The SEC’s Assistant Secretary-General acts as the head of the working group and the SEC Secretary-General acts as an adviser. The said working group has already worked on 2-3 issues.
Regarding the supervision of securities business operators, the SEC has overseen all 3 dimensions: 1. Financial stability 2. Personnel, focusing on directors, executives and those who perform important functions. such as investment advisers (IC), etc., and 3. Work systems, which is the case with AWS, with an important part of keeping customer assets.
The secretary-general of the SEC said that net liquid capital (NC) is a calculation tool to let securities companies know how much their liquidity is sufficient. If the NC cannot be maintained, other steps must be taken, for example, prohibiting the expansion of the business. The structure of NC calculation formula = Liquid assets – Total liabilities – Risk value It is noted that non-liquid assets cannot be taken as NC and total liabilities means total liabilities. Except for subordinated liabilities/lease contracts
SET sends information to the police and AMLO Then in the case of MORE stocks – collect information for stock manipulation test
Mr. Pakorn Peetathawatchai Director and Manager The Stock Exchange of Thailand (SET) discusses the progress of MORE stock trading continues to proceed. It is divided into 2 cases, in which the offense of fraud of securities companies (SEC) is currently working with the police and the Anti-Money Laundering Office (AMLO). Catch up in the afternoon on November 18, 2022.
As for the offense of creating securities prices (stock manipulation), the SET is collecting evidence together with the Securities and Exchange Commission (SEC).
“The SET is a front line in collecting evidence and submitting it to regulators. Which for the matter of fraud, the broker is the victim and the police and AMLO are the ones requesting information. The SET therefore has a duty to collect information and submit it to relevant agencies. In which the police and AMLO will help to examine the financial path and is considered useful in prosecuting stock manipulation in the future. Mr. Pakorn said
While removing the SP sign, the SET MORE securities are considering it every day. Because if the case is clear, it will be open for trading. Therefore, he would like investors and the public to be confident in the capital market system.
For the case where the SEC notified that it had ordered the securities company (Securities) Asia Wealth (AWS) to temporarily suspend its business. because it was found that the company misused the customer’s money without the customer’s order or consent According to the SEC’s order, the SET temporarily suspended trading orders of listed securities from AWS. In the futures market, only trading orders that clear existing positions are allowed. until the SEC Office has an order to change
In the case of securities Investors cannot place buy or sell stock orders with AWS, but investors can request to transfer shares deposited with AWS to their account opened with another broker for further trading. In the event that there is no account that other brokers can transfer to the Issuer Account (600) at TSD, and after opening an account at a securities company, they can transfer shares from account 600 to continue trading.
Derivatives Clients can only place orders to close positions. without being able to open a position In which, if the client closes the position, he can request to withdraw the collateral as usual. In the event that the client does not want to close the position but wants to transfer it to the securities company that he/she has an account with, he/she can notify the securities company as well.
However, it is considered that this incident is specific to the AWS securities company, not related to other securities companies. Other securities companies also provide services as usual. The stock exchange group will continuously and closely monitor the financial status of securities companies.