1. Date the punishment was imposed: August 15, 2017

2. Recipient of the punishment: FullRich Securities Investment and Consulting Co., Ltd. (hereinafter referred to as “FullRich Investment & Consulting”) and its Chairman Zhou, . 

3. Legal basis of punishment: Subparagraph 2, Article 103 of the Securities Investment Trust and Consulting Act, paragraph 1, Article 6 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises, paragraph 2, Article 10, paragraph 1, Article 11, subparagraphs 11 and 18, paragraph 2, Article 13 of the Regulations Governing Securities Investment Consulting Enterprises.

4. Facts of the violation and reasons:

(1) FullRich Investment & Consulting had, after cancelling the associated person registration of its Chairman, Zhou, , with the industrial association, allowed Zhou,  to produce the securities investment analysis reports, which were then furnished to company’s members. It is deemed as a violation against paragraph 1, Article 6 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises. 

(2) FullRich Investment & Consulting solicited the investors to join the membership, and provided the securities investment consulting services immediately after the receipt of membership fees, without entering into any written agreement of securities investment consulting with the clients. It extended the period of SMS notification to the clients at its sole discretion over the phone, causing the inconsistency between the SMS notification list and the contract periods. It is deemed as a violation against paragraph 2, Article 10 of the Regulations Governing Securities Investment Consulting Enterprises.

(3) The buy-sell recommendations of ETFs mentioned in the SMS from FullRich Investment & Consulting to its clients were provided in the form of daily journal of international macroeconomic trends, rather than delivering an investment analysis report, in which the material shall indicate the reasonable analytic basis and grounds regarding the Taiwan stock tendency forecast, or the operating advice of financial products (such as ETFs). In separate SMS sent on the same day, the buy-sell instructions regarding the same ETF were obviously inconsistent. Certain study report provided similar evaluation of market tendency, yet suggested the buy-sell instructions that were obviously different. It is deemed as a violation against paragraph 1, Article 11, and subparagraph 11, paragraph 2, Article 13 of the Regulations Governing Securities Investment Consulting Enterprises. 

(4) FullRich Investment & Consulting had entered into two contracts, of which the membership periods and membership fees were substantially disproportionate, with its client in one day. It is deemed as treating the securities investment consulting services as gift in violation against subparagraph 18, paragraph 2, Article 13 of the Regulations Governing Securities Investment Consulting Enterprises.

5. The disciplinary action: Pursuant to subparagraph 2, Article 103 of the Securities Investment Trust and Consulting Act, FullRich Investment & Consulting is ordered to dismiss the Chairman, Zhou, , from office.

 

Contact Office: Chen, Section Chief, Securities Investment Trust and Consulting Division, Securities and Futures Bureau

Contact Numbers: 2774-7226