SEC bans dealer over failed investments

Breaking News April 04, 2019 19:43

By The. Nation

3,374 Viewed

The Securities and Exchange Commission (SEC) has suspended the approval of Pat Chaimahawon as a capital market investment consultant and branch manager for two months because he did not comply with a client's instructions.

He was accused of giving investment advice that implied guaranteed returns without supporting information or documents. 

At the time of the alleged misconduct, he was working for Kasikorn Securities Plc. 

Following the client's complaint after block trading single stock futures, the SEC's further investigation revealed that during October 2017 Pat failed to comply with the client's instruction to cut loss when the client's derivatives trading account hit a Bt1 million loss. 

As a result of his negligence, the client's account was closed and the client suffered losses, it was ruled. 

Pat advised the client to wait for a quota of IPO shares to compensate for the loss incurred in the client's derivatives trading account. 

Pat's behaviour was deemed a professional failure. His non-compliance with the client's instructions and his guarantees of income contravened the Capital Market Supervisory Board. 

Investors are advised to study information and risks when deciding to open a trading account for each product. 

Opening a derivatives trading account for a block trade and investors should be made aware of the risks.

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