Punishment for President Securities Corporation for Violation of Securities Management Laws and Regulations
2021-06-18
I. Date of punishment: June 18, 2021
II. Objects of punishment: President Securities Corporation (hereinafter referred to as “President Securities”).
III. Legal basis for the punishment: Article 65 and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and paragraph 2, Article 2 of the Regulations Governing Securities Firms.
IV. Facts of law violation: In its business execution, President Securities had the facts of mailing the customer statement to the e-mail box of the salesperson, failing to properly implement the transaction price verification procedure for foreign securities proprietary trading, failing to verify whether there were subscription applications by customers who used or fraudulently used other people's names for the underwriting and placement of securities, the subscription objects in the underwriting inquiry and placement operation not in compliance with the regulations, and not setting charging standards for channel service fees collected by professional investors from their counterparties in handling the specific money trust business; in addition, there was no disclosure of actual discount and annualized rates, the salesperson used the company's internal network address to purchase funds for relatives, and the review of some high-risk customers was not completed within one year. The findings above show that President Securities did not properly implement its internal control system and violated paragraph 2, Article 2 of the Regulations Governing Securities Firms.
V. Punishments: A fine of NT$240,000 is imposed on President Securities 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.
II. Objects of punishment: President Securities Corporation (hereinafter referred to as “President Securities”).
III. Legal basis for the punishment: Article 65 and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and paragraph 2, Article 2 of the Regulations Governing Securities Firms.
IV. Facts of law violation: In its business execution, President Securities had the facts of mailing the customer statement to the e-mail box of the salesperson, failing to properly implement the transaction price verification procedure for foreign securities proprietary trading, failing to verify whether there were subscription applications by customers who used or fraudulently used other people's names for the underwriting and placement of securities, the subscription objects in the underwriting inquiry and placement operation not in compliance with the regulations, and not setting charging standards for channel service fees collected by professional investors from their counterparties in handling the specific money trust business; in addition, there was no disclosure of actual discount and annualized rates, the salesperson used the company's internal network address to purchase funds for relatives, and the review of some high-risk customers was not completed within one year. The findings above show that President Securities did not properly implement its internal control system and violated paragraph 2, Article 2 of the Regulations Governing Securities Firms.
V. Punishments: A fine of NT$240,000 is imposed on President Securities 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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Update：
2021-06-24