SEC directs broker to restrain agent from offering investment advice

Securities and Exchange Commission (SEC) has directed stockbroker TKS Securities to bar its agent Investor Eye (Pvt) Ltd alias ‘Ayojana Guru’ from offering investment advice to the public with immediate effect. 
“TKS Securities (Pvt) Ltd is hereby directed to restrain Investor Eye (Pvt) Ltd forthwith from making representations to the public as an investment advisor under the name and style ‘Investor Eye’ or ‘Ayojana Guru’ or any other name using any medium whatsoever of communication,” a SEC directive dated January 07, 2016 noted.
The directive said, a stockbroking firm may offer investment advice to its clients through Certified Investment Advisors employed by such 
a broker.
“An agent and/or any person employed by such agent cannot provide investment advice.”
The directive further noted that TKS Securities would be held responsible for any violations committed by its agents of the stockbroker rules of the Colombo Stock Exchange and provisions of the SEC Act.A separate letter had been dispatched on the same day instructing the relevant agent to restrain from offering investment advice with immediate effect. Capital market stakeholders told Mirror Business that this is a common phenomenon related to agents of a number of stockbrokers and therefore the SEC may have to issue a general directive concerning all registered brokers who employ agents.