Bangkok--Oct 11--SET
SET Executive Vice President Mr. Suthichai Chitvanich disclosed that The Stock Exchange of Thailand (SET), through its “Sub-committee for the Consideration of Offenses Relating to, and Punishment for, the Charging of Brokerage or Agent Fees for the Buying and Selling of Listed Securities”, has ruled that two securities companies, namely Intel Vision Securities Pcl. (“IVS”) and UOB Kay Hian Securities (Thailand) Co. Ltd. (“UOBKHST”), have violated the SET’s Rules and Procedures for Collecting Brokerage or Agent Fees and the SET regulations on Good Corporate Governance of Members dated 11 January 2002.
“The Sub-committee discovered that IVS paid compensation, under an incentive scheme, to a marketing representative in excess of that permitted by the SET’s regulations. The Sub-committee also held that the executives responsible for overseeing these matters failed to supervise the company’s operations in a vigilant manner with regards to the compensation to the marketing officer.
By the virtue of Articles 18, 25, 27 and 28 of the Rules, the Sub-committee has passed a resolution to fine IVS THB 90,000 (approx. USD2,250), request the company to assure the SET that the three executives will, from this day forth, monitor and control the operations of the company strictly in compliance with the SET’s regulations, and that the marketing officer involved shall strictly comply with the SET’s regulations,” the SET Executive Vice President said.
As Mr. Suthichai went on to say: “As for UOBKHST, the Sub-committee discovered that the company gave ten marketing officers credit for customers whose accounts they did not service, resulting in their receiving compensation under an incentive scheme in excess of that permitted by the SET’s regulations. The company also dispensed other benefits to the clients of one marketing officer in the form of entertainment disbursements that were not in line with the firm’s ordinary course of business.”
Therefore, by the virtue of Articles 18, 25, 27 and 28 of the Rules, the Sub-committee has resolved that the company shall be fined THB 2,630,000 (approx. USD 65,750).”
The Sub-committee also required that the company punish the one marketing officer by prohibiting him from performing his duties as a marketing officer and trader for 60 days. As this person is also a licensed trader as per Article 28(1) of the Rules, should he no longer work at UOBKHST, he will still be punished as per Article 28(1) for the same period stated above. The resolutions also require that the three executives and the ten marketing officers of the company shall strictly comply with the SET’s regulations.
The SET has already informed both companies about these resolutions. They acknowledged the results and do not wish to appeal. They have confirmed that their policies are to operate strictly in compliance with the SET’s regulations, and that these violations were operational errors. They will further require their management and compliance staff to more strictly oversee operational proceedings and establish a better internal control system so as to make it more in line with the SEC’s as well as SET’s rules.
For more information, please contact
the Corporate Communication Dept.:
Ladawan Kantawong Tel: 0-2229-2036 /
Kulvida Jintakawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 End.
--InfoQuest (NT)--