Finance Ministry revokes Asia Wealth Securities licence for misusing client funds
The Ministry of Finance has withdrawn Asia Wealth Securities‘ (AWS) securities business license following a recommendation from the Securities and Exchange Commission (SEC) due to the unauthorised use of client funds.
The SEC discovered that on November 14, AWS had improperly utilised 154 million baht of clients’ funds to buy shares of More Return (MORE) from Thailand Clearing House without clients’ consent.
According to the SEC, “AWS’s actions could cause serious harm to the public interest. The case was brought before the Capital Market Supervisory Board, which ordered AWS to return the misused money to clients and develop a protection system to prevent a recurrence of the problem within a specified period.”
On December 1, the SEC board found that AWS failed to follow the regulator’s instructions, particularly in preventing the unauthorised use of clients’ assets. Furthermore, this was not the first time AWS had committed such an offence, despite previous warnings from the SEC.
As a result, the Finance Ministry revoked AWS’s licences for securities brokerage, underwriting, borrowing, trading and lending of securities, and private fund management, effective from May 19, 2023, reports Bangkok Post.
AWS customers are advised to contact the company to reclaim their deposited assets. For further information or queries, customers and investors can reach out to the SEC via its public service centre by calling 1207, the SEC Office Facebook page, SEC Live Chat on its website, or emailing info@sec.or.th.
Meanwhile, the Thai stock market is suffering as the Stark Corporation is expected to default on payments for corporate bonds valued at nearly 9.2 billion bonds. During a bondholders’ meeting, the company announced to call default on two bond series worth 2.24 billion baht. The Stock Exchange of Thailand has allowed the shares of the company to be traded for a short time period from June 1 to 30. For more information about the story, click this LINK.
