After a four-year tenure that saw a royal decree enacted to supervise digital assets and the imposition of sanctions against tycoons for insider trading, outgoing secretary-general Rapee Sucharitakul will say a final farewell to the Securities and Exchange Commission on May 1, leaving behind a legacy imprinted in Thailand's capital market history.
Mr Rapee won the race to succeed former SEC secretary-general Vorapol Socatiyanurak in 2015, becoming the market regulator's eighth leader. But he was no stranger to the SEC, the organisation where he started his career.
He worked at the securities watchdog for more than a decade before leaving in 2005 to become executive chairman of Kasikorn Securities Plc. His last position during his initial stint at the SEC was as senior assistant secretary-general. In addition, he was director of several departments, including capital market development and market intermediaries supervision.
The prosecution of well-known businessmen for insider trading and the regulations enacted to supervise digital asset trade are the SEC's key achievements during Mr Rapee's time at the top.
STRICT ENFORCEMENT
Mr Rapee's career started and ended at the SEC.
As a law graduate, Mr Rapee sped up the legal execution process during his leadership. Since 2017 there have been 71 offenders consenting to civil sanction in 18 cases, with total civil penalties and compensation for received benefits exceeding 383 million baht. In 12 additional cases, complaints have been filed in civil court against 91 offenders.
Furthermore, many civil penalties were imposed on major shareholders and management executives for price manipulation and insider trading. Among those caught in the net: Bangkok Airways Plc's Prasert Prasarttong-Osoth, CP All Plc's Korsak Chairasmisak, Bangkok Insurance's Chai Sophonpanich, almost a dozen individuals who are current or former directors of Energy Earth Plc, and 40 wrongdoers found to be manipulating the share price of AJ Advance Technology Plc.
For criminal actions from 2015 to June 2018, there were complaints lodged against 313 offenders. Some 342 offenders were fined, with total criminal fines totalling 235 million baht. Administrative sanctions in the same period snared 97 people to be suspended for their roles in the capital market and 37 individuals to be revoked of licences.
Mr Rapee says the accomplishments stemmed from teamwork and a well-established system hinging on four core values: openness, profound knowledge, collaboration and straightforwardness. These are the main values he's put forth since taking the helm in 2015.
"Law enforcement is a minor part of the secretary-general's duty, but it grabs media headlines and excites the public," Mr Rapee says. "I think we have walked very far to build awareness of corporate governance (CG)."
Civil sanctions imposed on executives of SET-listed companies have led to more CG awareness, he says, to an extent beyond the amount of imposed civil fines, as seen in the plunging share prices of firms that breached capital market regulations.
"The market should have self-discipline," Mr Rapee says. "This primarily comes from good regulations, fear of law enforcement and fear of market peer pressure. The SEC must balance these three aspects simultaneously. We cannot lean on one side [more than the others]."
CG-related tasks carried out during Mr Rapee's tenure included providing anti-corruption indicators in 2016, I Code and CG Code in 2017, and a draft legislation for establishing the Capital Market Development Fund in 2017.
Although his background is law, Mr Rapee's style of work does not rely solely on theory.
"I try to encourage people to think more than just providing answers," he says. "In truth, my main role is to train staff to build up [capital market] foundations and encourage them to realise the power of asking people to think."
The key questions a leader must ask, he says, are what is the landscape of the capital market industry and what regulations would be practical under this landscape.
"I think this is an era in which we have very good cooperation with all stakeholders," Mr Rapee says. "We have a mutual alignment of interest."
Ultimately, the SEC is an organisation that stands between conflict of interest and different demands among market participants, he says.
LAYING FOUNDATIONS
In his own words, Mr Rapee's proudest achievement at the SEC is having the opportunity to lay the foundations in almost every aspect, internally and externally, though some of them may take a lifetime to yield an outcome.
Having worked at several private companies and public organisations, Mr Rapee has gained extensive experience in policymaking, consultancy and management.
Some of his previous positions include independent director at Big C Supercenter Plc, adviser to the president at Muang Thai Life Assurance Plc, member of the superboard empowered to regulate and inspect procurement projects of state-owned enterprises, and member of the board of governors at the Stock Exchange of Thailand.
"I am lucky to have had opportunities to work at various organisations, representing a variety of businesses and cultures," Mr Rapee says. "I see strengths [in each organisation], which is a common theme for a business surviving in different business cycles. Survivors rely on the foundations, not decisions from only one [executive]. Even [the business of] Kasikornbank is also driven by a system, not solely by its chief executive's decisions."
Essentially, a good organisation must believe in its system. Although mistakes may occur, a system helps an organisation reduce mistakes that result from the decision-making of individuals, Mr Rapee says.
"To become a sustainable organisation, I have applied [work] experiences by creating a good foundation, finding good people, believing in the system and building [the quality of] people," he says.
During the four years of his leadership, Mr Rapee's contributions were focused on the securities watchdog's sustainable growth and Thailand's capital market as a whole, with emphasis on four areas: institutional arrangements, standard-setting, capital market accessibility and enforcement.
CHALLENGES AHEAD
Despite the emplacement of important foundations, challenges remain for the Thai capital market.
In Mr Rapee's view, some of the crucial challenges centre on market accessibility. Securities trading accounts number 3 million, considered a small portion relative to a total working population of 20 million.
Although the capital market has advantages over other asset classes, such as property, along with abundant financial liquidity and a minimum price standard, the market's connection to the general populace is still not broad-based, Mr Rapee says.
"I think digitalisation will be the key to expanding market accessibility in the future, even though it may take some time to educate people and build familiarity with digital technology," he says.
He hopes that the strong foundations created during his tenure will provide a blueprint for future results.
After stepping down from the post of secretary-general, Mr Rapee is forbidden from holding any position at a company related to the capital market for two years, in order to prevent conflict of interest as stipulated by law.
"I plan to return to Chiang Mai province, my mother's homeland, and do something I love, such as cooking, winery or hospitality," he says.
