The FES gave marketing officers credit for customers whose accounts the officers did not service, resulting in their receiving compensation which was not in accordance with the SET’s regulations. Two marketing officers passed on the incentives to their managers. Furthermore, the company dispensed other benefits to the clients of one marketing officer in the form of entertainment disbursements which were not in line with the firm’s ordinary course of business.
By virtue of Articles 23, 30, 32 and 33 of the SET’s Announcement dated October 28, 2004, the Sub-committee resolved to levy a fine on Far East Securities Co. Ltd. (FES) of THB3.41 million, and place its two executives involved in entertainment disbursements on probation for one year.
In addition, one marketing officer involved shall be prohibited from performing the duties of a marketing officer and/or trader for 60 days. FES shall also place four marketing officers on probation for one year. The three FES executives as well as the twelve marketing officers involved in the preceding offenses shall henceforth strictly monitor and control the company’s operations in compliance with the SET’s regulations.
The FES has acknowledged the said resolutions and confirmed that its policies are to operate strictly in compliance with the SET regulations. The company assured the SET that it would further require its management and compliance unit to more strictly oversee the company’s operations so as to keep them better in line with the Securities and Exchange Commission (SEC) and the SET rules and regulations.