1、    Date the fine was imposed: 4 January 2017
2、    Recipient of the fine: Hua Nan Futures Co., Ltd. (hereinafter " Hua Nan Futures "), its Taichung Branch Manager Jan and former employees Liu and Huang.
3、    Legal basis of the fine: Article 2, paragraph 2, Article 4, paragraph 2 and Article 55, subparagraph 11, 17, 23 of Regulations Governing Futures Commission Merchants.  Article 16, paragraph 2 of Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
4、    Facts of the violation and reasons: Hua Nan Futures engages in futures brokerage business with permission from the Financial Supervisory Commission (hereinafter " the Commission ").  Huang and Liu, former employees of Hua Nan Futures, were involved in lending or loan brokerage activities with a futures trader of the head office during the period when they were registered as the associated persons for brokerage trading in the Taichung Branch of Hua Nan Futures.  Liu, in addition, conducted futures trading using the account of his spouse and, while working at the business location of the Taichung Branch, used his mobile phone to connect to external network and execute futures transactions during trading hours. Jan, the branch manager, however failed to manage the case in accordance with the internal control policies of the company. Hua Nan Futures did not fulfill its responsibilities to properly supervise the operations and ensure compliance to its internal control policies. The company also failed to report the case within five business days after knowing the fact that its associated persons have violated the Futures Trading Act （hereinafter " the Act "）or other directives announced by the Commission in accordance with the Act.  Those facts were found to be in violation of laws and regulations governing futures business.
5、    Resulting fine: An administrative fine of NT$300,000 was imposed on Hua Nan Futures pursuant to Article 119, paragraph 1, subparagraph 2 of the Act.  According to Article 101, paragraph 1 of the Act, Hua Nan Futures was further ordered to suspend Jan from executing futures brokerage trading business for one month, and to suspend former employee Liu from executing futures brokerage trading business for three months.  In addition, Huang’s current employer, KGI Futures Co., Ltd., was further ordered to suspend Huang from executing futures brokerage trading business for one month pursuant to Article 101, paragraph 1 of the Act.