Bank of Thailand slaps fines on 4 asset managers for violation of rules of providing loans to directors

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The Bank of Thailand (BoT) fined 4 asset managers for breaking regulations, the regulator announced.

The BoT said Ekthunyakit Asset Management, Globalone Asset Management, Emperor Justice Asset Management and Aiqon Capital Asset Management (Thailand) violated the Emergency Decree on Asset Management Company that came into effect in 1998.

The four asset managers were found to have provided loans for directors and shareholders of the companies which is against regulations because providing loan is not one of the functions of an asset manager.

The central bank had earlier ordered for the companies to stop providing loans to their directors and shareholders but the 4 asset managers failed to comply.

According to the law, the asset management companies could face a fine of no more than 30,000 Baht and a further fine of not exceeding 3,000 Bath per day throughout the continuation of such violation until rectification has been made.

A committee member, manager or person who is responsible for the operations shall also be liable to imprisonment for no more than 3 years or a fine of no more than 300,000 Bath or both, unless it can be proven that the person had no part in the commission of such offence.

The bank said they have already fined the 4 asset management companies since April 1.

“Asset management companies that are being regulated by the BoT must operate within the boundary that was directed by the decree only,” the bank said in a statement.

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