Kgi Securities Block An Unknown Number Of Customers’ Accounts Without Notice.

[AjarnJan]

Today's morning an unknown number of KGI Securities customers had to realize that they were denied access to their funds and to maintain their portfolios inflicting severe economical losses for many. The blockage of the accounts were done without any warning nor prior information to the customers. KGI staff at their local branch offices couldn't access the accounts either on behalf of the customers.

Contact by customers to KGI head office by phone and/or email requesting an explanation remains neglected and unanswered until this evening.

According to three different local KGI Branch Managers affected customers talked with this morning KGI's head office claimed to have informed them (but not the affected customers) about the upcoming action one month ago. All three Branch Managers independently denied to have received any such information from their HO. They seemed to be as stunned as their customers. They could only inform that KGI Securities head office in their wisdom had decided to take a number of customer accounts up for review, which obviously meant they were being blocked without notice and customers denied access to their funds/portfolios.

Why the accounts were closed/frozen/"taken up for review" it hasn't been possible to achieve an understandable explanation to neither from KGI's head office nor from the local Branch Managers. What is known is that while it only takes a deposit of Baht 50,000 to open an account with KGI accounts with deposits and portfolios of more than Baht 500,000 was included in this closure/review. How many accounts were affected is only known by KGI's head office, but according to a list yours sincerely was allowed to scroll partly through at a local branch office it was many hundred.

For the customers to gain access to their funds/portfolios the Branch Managers had to go through the whole procedure/paperwork for establishing new accounts. Around 11.30 am most customers were again allowed access to their funds/accounts/portfolios. However for many that was too late to avoid losses. At closing time 16.30 at least some customers had to realize that KGI's way of performing customer account maintenance directly had cost them an immediate loss of 3.4% on their portfolios.

KGI Securities head office has, following their usual behavioural pattern, up till now also neglected to comment on whether they are going to compensate their customers these losses.

[moe666]

I guess I will not be opening an account with these guys when I come in Nov.

[MacWalen]

KGI stock does not seem to be affected. 3.10 today, I bought is for 2.33 and it keeps going up and up. Were there any other incidents like that? I am with Bualuang and I do not like their service, especially IT support and was actually thinking about switching to KGI.

[AjarnJan]

<br />KGI stock does not seem to be affected. 3.10 today, I bought is for 2.33 and it keeps going up and up. <b>Were there any other incidents like that?</b> I am with Bualuang and I do not like their service, especially IT support and was actually thinking about switching to KGI.<br />

I and a group of 7 friends have been customers with KGI for 3+ years. We haven't had incidents like the one yesterday before. Though, we now and then got issues not being able to log on to our accounts, KGI's connection to SET being down, etc. When it comes to service from their HO it is not existing, especially not when talking IT support. They have never responded to any contact when we have had issues.

The only reason we are still hanging on is that the managers of the 3 different local branch offices we are using are extremely rare species. They are always present, their doors always open, speaks fluent English, and anything you throw at them are effectively dealt with immediately. If there are any problems, if they got hot tips related to your portfolio, or anything similar you got them on the phone. They are more than aware of their HO's shortcomings (quote "arrogance"), but are all doing their best to avoid this affecting their customers. It was also them who solved the problem for us yesterday. HO didn't lift a finger.

If you are considering using KGI my advice is that you pay a visit to the branch office nearest to you. Talk with the manager and see what type of person he is. Do not rely on the HO in any regard.

PS. The KGI share is considered a speculative one. According to all analysts the real present value is only 1.88 and they all recommend SELL. Maybe you should consider doing exactly that before it dives.

[MacWalen]

Thanks for the info. I might stay with the Bualuang. Regarding hot tips, if I learned anything in my many years of trading and investing and making and losing money is that the last person I take hot tips from is my broker. Brokers always recommend sell of buy because that is how they make money. I am not in a hurry. If it goes down something else will go up, it is like running a farm.