SET Announces The Consideration Of US's Brokerage Rule Infringement

Ms. Patareeya Benjapolchai, Executive Vice President of the Stock Exchange of Thailand (SET), announced the consideration of the Sub-Committee Responsible for Consideration of Offenses and Punishments for the Charging of Brokerage or Agent Fees for the Buying and Selling of Listed Securities regarding the case of United Securities Public Co., Ltd. (US). The Sub-committee has ruled that US has paid financial benefits as entertainment expense disbursements to clients of four of its marketing representatives, which is not a typical securities service. Moreover, the executives responsible for overseeing this matter must be held accountable under Article 27 of the SET's Announcement of Rules and Procedures for Collecting Brokerage or Agent Fees as well as the Good Corporate Governance for Members, B.E. 2002, dated January 11, 2002, The EVP said that the aforementioned executives failed to supervise the company's operations in a prudent manner regarding the entertainment expense disbursements of the company's marketing representatives. This amounts to a violation of the SET's regulations.

"From the presented evidence and by virtue of Articles 18, 25, 27 and 28 of the aforementioned regulation, the Sub-committee has passed a resolution to fine the company 400,000 baht and is pending the determination to punish one executive involved in the disbursement of entertainment expenses of marketing representatives. Should they be involved in any further violations within 30 days after the notification from the SET, they shall be dismissed as per Article 27 of the regulation," the SET Executive Vice President said.

She went on to say: "Moreover, the Sub-committee resolved that the company has punished the four marketing representatives involved in the cases by prohibiting them from performing their duties as both marketing representatives and licensed traders temporarily for 30 days. Furthermore, the company has agreed to impress upon the two executives involved to strictly supervise the marketing representatives and to be in compliance with the SET's rules and regulations. Nevertheless, since the four marketing representatives are also licensed traders as per Article 28(1) of the regulation, they are to be placed on probation, or in case they no longer work at the company, they still will be punished as per Article 28(1) for the same period mentioned above."