The SEC ordered Asia Wealth Securities to prosecute Asia Wealth after temporarily suspending its activity. Ready to order a refund by November 20, because the customer’s money is 157 million baht. Then, in the case of MORE stocks defrauding brokers, inform AWS customers that they can transfer the stocks. Ready to keep a close eye on the financial position of the broker
From the case in which the Securities and Exchange Commission (SEC) found that the Asia Wealth Securities Company used client money held by the company to pay for the purchase of securities with the clearing house. for which the customer did not order or agreed to order In the amount of 157.99 million baht until ordered to temporarily suspend business operations.
The SEC news said that such an action It was a resolution of the Capital Market Supervisory Board (SEC) on November 17, 2022, believing that the company’s operation may cause serious damage to the public interest. therefore resolved under Section 143 of the Securities and Exchange Act BE 2535
(1) misuse of client money that the Company uses without the client’s permission; Come back by Sunday, November 20, 2022.
(2) temporarily suspend securities business Unless it is a transaction to hedge the overall risk of the Company’s investment or the fulfillment of pending obligations. From Friday 18 November 2022 onwards, until the company returns the customer’s money. and was cleared by the SEC to conduct business as usual
(3) set up a work system to prevent the above incident from happening again; By Friday 18 November 2022
(4) Facilitate the Company’s customers. so that the client can carry out operations on the client’s assets that are at the company according to the client’s wishes in the time frame agreed with the client
With respect to the derivatives business, the SEC, by virtue of Section 50 of the Derivatives Act BE also as of Friday, November 18, 2022, with the exception of trading to cancel the existing futures position until the company returns the client’s money and is been cleared by the SEC to conduct business as usual Including requiring the company to proceed in accordance with (1), (3) and (4) above.
The SEC urgently declares that ASW has clearly violated the rules
Yesterday (November 18), SEC Secretary General Ms. Ruenwadee Suwanmongkol revealed that the order temporarily closed Asia Wealth Securities (AWS) due to corporate dealings. together with the office the SEC also went to inspect the company. It has been found that part of the client’s account funds have been used without authorization. for the payment of securities
“The SEC found that some of the money was client money. It is clearly a violation of the rules. The above case is not related to the company’s financial situation. said the secretary general of the SEC
However, after the unusual share swap of More Return Public Company Limited (MORE), the SEC deemed the matter urgent. then coordinating with the Thailand Stock Exchange (SET) to investigate various securities companies However, apart from Asia Wealth Securities (AWS), it has not yet been found. Other securities companies of interest
“Now I still have to wait for that. Will the company be able to return the money to the customer’s account or not on November 20? Initially talked to AWS executives, the company said that there are more channels in the pipeline. So I will wait before that time”. said Miss Ruenwadee
Criminal proceedings for violation of the Securities and Exchange Act
However Misuse of client funds is an offense under the Securities and Exchange Act This will require prosecution under the law. Will it lead to other crimes or other laws or not? must be considered in the next step.
The SEC secretary general said that there are currently 3 main problems in the process due to abnormal MORE stock trading, namely:
1. Consider whether or not the case that occurred is fair according to Securities Act Separate from fraud subject to criminal law. Yesterday there was a meeting with police lieutenant general Jirapob Puridet, commander of the Central Investigation Police (Criminal Investigation Command) to ask for cooperation.
2. Securities Company and Thailand Stock Exchange (SET) have their roles and duties performed according to the rules or not and how In the past, the SEC has continuously investigated and talked to business owners and
3. SEC discusses stock quality with SET. Especially small stocks, all 3 of which the SEC has done in the last week.
Set up a special working group to inspect The lawsuit is broad impact.
In this regard, the SEC has set up a special working group that will be the focus of the investigation to speed up the investigation. why it’s an issue that has a broad impact The Assistant Secretary General of the SEC serves as the head of the working group and the Secretary General of the SEC serves as an adviser. The aforementioned working group has already worked on 2-3 issues.
Regarding the oversight of securities industry players, the SEC oversaw all 3 dimensions: 1. Financial stability 2. Personnel, focusing on directors, managers and those performing important functions, such as investment advisors (IC ), etc., and 3. Work systems, such as in the case of AWS, with a major part of conserving customer resources.
The SEC secretary general said net working capital (NC) is a calculating tool to let securities companies know how much their liquidity is sufficient. If the NC cannot be maintained, other measures must be taken, for example prohibiting the expansion of the business. The structure of the calculation formula NC = Liquid assets – Total liabilities – Risk value It should be noted that illiquid assets cannot be assumed as NC and total liabilities indicate total liabilities. Except for subordinated liabilities/lease agreements
SET sends info to police and AMLO Then, in case of MORE stock, collect info for stock handling test
Mr. Pakorn Peetathawatchai Director and Manager Stock Exchange of Thailand (SET) discusses progress of MORE stock trading continues to move forward. It is divided into 2 cases, in which the crime of fraud in securities firms (SEC) is currently at work with the police and the Anti-Money Laundering Office (AMLO), recovered in the afternoon of 18 November 2022.
Regarding the crime of securities price creation (securities manipulation), SET is collecting evidence together with the Securities and Exchange Commission (SEC).
“SET is at the forefront of gathering evidence and presenting it to regulators. That as far as fraud is concerned, the victim is the broker and the police and AMLO are the ones requesting information. Therefore, EETS has a duty to collect information and present it to the relevant agencies. In which the police and AMLO will help look into the financial path and is considered useful for prosecuting stock manipulation in the future. said Mr. Pakorn
While removing the SP sign, SET MORE titles consider it every day. Because if the case is clear, it will be open to trade. Therefore, he would like investors and the public to trust the capital market system.
For the case in which the SEC has communicated that it has ordered the securities company (Securities) Asia Wealth (AWS) to temporarily suspend its activity. because the firm was found to have misused client money without the client’s order or consent According to the SEC order, the SET temporarily suspended trading orders in publicly traded securities from AWS. In the futures market, only trade orders that cancel existing positions are allowed. until the SEC office has a change order
In the case of securities Investors cannot place orders to buy or sell shares with AWS, but investors can request to transfer the shares deposited with AWS to their account opened with another broker for further trading. In case there is no account other brokers can transfer to the issuer account (600) with TSD and after opening an account with a securities company, they can transfer shares from the 600 account to continue trading.
Derivatives Clients can only place orders to close positions. without being able to open a position Where, if the client closes the position, he can request to withdraw the collateral as usual. In case the client does not want to close the position but wants to transfer it to the securities firm where he has an account, he can also notify the securities firm.
However, this incident is believed to be 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 constantly and closely monitor the financial condition of securities companies.
