Disciplinary Action on Concurrent Securities Business of Land Bank of Taiwan for Violation of Securities Management Laws and Regulations
2021-01-20
1. Date of disciplinary action: January 20, 2021
2. Object of disciplinary action: Land Bank of Taiwan (Land Bank)
3. Legal basis for the disciplinary action: Article 65 (Upon its examination of the business or financial conditions of a securities firm, should the Competent Authority find that there are matters not in compliance with the related regulations, the Competent Authority may at any time issue a corrective order, and require the securities firm to correct the non-compliance within a prescribed period.) and subparagraph 4, paragraph 1, Article 178-1 (If a securities firm, an enterprise as set forth in Article 18, paragraph 1, a securities dealers association, a stock exchange, or an over-the-counter securities market commits any of the following violations, the violating entity or association may be punished with an administrative fine of not less than NT$240,000 and not more than NT$4.8 million, and the Competent Authority may order it to comply within a prescribed time period; if it fails to comply within the specified period, consecutive fines may be imposed: 4. A securities firm or an enterprise as set forth in Article 18, paragraph 1 fails to strictly implement its internal control system.) of the Securities and Exchange Act, and paragraph 2, Article 2 of the Regulations Governing Securities Firms (The operation of securities firm shall be in accordance with laws and regulations, articles of incorporation, and the internal control system referred to in the preceding paragraph).
4. Facts of law violation: In the Land Bank’s concurrent securities business and implementation of the internal control system, there are circumstances where the account opening of employees' spouses and minor children are not distinguished from that of other customers, the conflict of interest checking on internal staff is not implemented, the credit lines of related accounts are not consolidated for control, no control mechanism is established for the public subscription operation, no verification is made on whether there are customers using other people's names or pretending to be others for subscription, the securities businessmen failed to register before business execution, and the internal staff used their personal mobile phones to trade securities on behalf of their relatives and friends. The above are verified to have violated paragraph 2, Article 2 of the Regulations Governing Securities Firms.
5. Disciplinary action imposed: A fine of NT$240,000 is imposed on Land Bank in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and a correction is required in accordance with Article 65 of the same Act.
2. Object of disciplinary action: Land Bank of Taiwan (Land Bank)
3. Legal basis for the disciplinary action: Article 65 (Upon its examination of the business or financial conditions of a securities firm, should the Competent Authority find that there are matters not in compliance with the related regulations, the Competent Authority may at any time issue a corrective order, and require the securities firm to correct the non-compliance within a prescribed period.) and subparagraph 4, paragraph 1, Article 178-1 (If a securities firm, an enterprise as set forth in Article 18, paragraph 1, a securities dealers association, a stock exchange, or an over-the-counter securities market commits any of the following violations, the violating entity or association may be punished with an administrative fine of not less than NT$240,000 and not more than NT$4.8 million, and the Competent Authority may order it to comply within a prescribed time period; if it fails to comply within the specified period, consecutive fines may be imposed: 4. A securities firm or an enterprise as set forth in Article 18, paragraph 1 fails to strictly implement its internal control system.) of the Securities and Exchange Act, and paragraph 2, Article 2 of the Regulations Governing Securities Firms (The operation of securities firm shall be in accordance with laws and regulations, articles of incorporation, and the internal control system referred to in the preceding paragraph).
4. Facts of law violation: In the Land Bank’s concurrent securities business and implementation of the internal control system, there are circumstances where the account opening of employees' spouses and minor children are not distinguished from that of other customers, the conflict of interest checking on internal staff is not implemented, the credit lines of related accounts are not consolidated for control, no control mechanism is established for the public subscription operation, no verification is made on whether there are customers using other people's names or pretending to be others for subscription, the securities businessmen failed to register before business execution, and the internal staff used their personal mobile phones to trade securities on behalf of their relatives and friends. The above are verified to have violated paragraph 2, Article 2 of the Regulations Governing Securities Firms.
5. Disciplinary action imposed: A fine of NT$240,000 is imposed on Land Bank in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and a correction is required in accordance with Article 65 of the same Act.
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2021-02-23