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SEC and ECD raid on unlicensed business operators at FinTech exhibition
The SEC and relevant authorities conducted a joint operation following reports of suspicious activities at an exhibition involving unlicensed securities, derivatives, and digital asset business operators.
SEC and CIB inspected a FinTech exhibition at a hotel, where unlicensed operators were found soliciting public to use their services. Public and event organizers warned to be cautious.
The Securities and Exchange Commission (SEC), in collaboration with the Royal Thai Police’s Central Investigation Bureau (CIB) through the Economic Crime Suppression Division (ECD), has conducted an inspection of unlicensed business operators at their booths during a financial technology (FinTech) exhibition held at a hotel. They were found soliciting the public to use their services without proper license.
Key Takeaways
- The SEC and relevant authorities conducted a joint operation following reports of suspicious activities at an exhibition involving unlicensed securities, derivatives, and digital asset business operators.
- Despite prior alerts to the event organizers, on-site inspections revealed exhibitors engaging in unlicensed activities, prompting the SEC to collaborate with authorities for further investigation.
- The SEC emphasized potential legal action, including imprisonment and fines, against exhibitors found to have violated regulations, demonstrating their proactive approach to enforcing laws and protecting the public and investors.
The SEC monitors and observes events and exhibitions featuring booth setups related to investment advice and service solicitation. Recently, the SEC has been alerted by the public and relevant stakeholders regarding suspicious activities involving unlicensed securities companies, derivatives business operators, and digital asset business operators, including such business operators from abroad. These entities allegedly solicited the public to invest or use their services at their booths during a FinTech exhibition at a hotel. In this regard, the SEC coordinated with the venue owner and the event organizer in advance, informing them of these concerns before the event date.
On 7 September 2024, the date of the event, the SEC conducted an on-site inspection and found that some exhibitors were engaging in business activities without proper license. The SEC notified the event organizer to suspend the activities of these exhibitors. However, due to a lack of timely cooperation, the SEC teamed up with relevant authorities to investigate, which involved checking 10 exhibitors. More evidence were gathered. If any activities liable to be in violation of the laws enforced by the SEC are found, a legal action may be pursued, which may lead to imprisonment and fines. If such activities contravene other laws, the SEC will collaborate with relevant authorities to take further action.
The public and investors are strongly advised to be cautious about using services of unlicensed operators of securities, derivatives and digital asset businesses, including those from foreign countries, as they are not under the SEC’s supervision and may pose a risk of scams. Concurrently, event organizers should exercise caution when allowing unlicensed business operators to set up exhibition booths, as this may inadvertently facilitate illegal activities.
Jomkwan Kongsakul, SEC Deputy Secretary-General said: “This inspection conducted with the CIB and the ECD was a result of our proactive collaboration to examine wrongful activities in the capital market and the digital asset market, aiming to ensure effective, swift, and thorough law enforcement. This process also serves to prevent and mitigate potential harm to the public and investors.”
To verify the names of licensed business operators under the SEC’s supervision, please visit the SEC website at www.sec.or.th or use SEC Check First application. Furthermore, leads on suspicious activities in the capital market can be notified to the SEC Complaint Center via Hotline 1207 or SEC Facebook Page or SEC Live Chat on the SEC website.
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