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Administrative Sanction

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Sanction on KGI Securities Co., Ltd. for Violation of Securities Management Related Laws and Regulations

I.    Date of sanction: March 9, 2022
II.   Object of sanction: KGI Securities Co., Ltd. (hereinafter referred to as “KGI Securities”).
III.  Legal basis for the sanction: 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 violation: KGI Securities has violation cases of linking customers to the shared computer room of the Stock Exchange mainframe without going through internal approval procedures, failing to accurately record customer Internet addresses for placing orders, failing to accurately review trading conditions of its subsidiary's application for brokerage fee discount, failing to inform customers of the forecast nature of the stock recommendation information it sent, failing to inspect the conflict of interest of internal personnel entrusted to trade stocks, and failing to confirm the identity of the personnel of corporate customers who have the right to place securities trading orders and keep relevant records. The firm failed to implement its internal control system, and the facts are verified to have violated paragraph 2, Article 2 of the Regulations Governing Securities Firms.
V.   Sanction imposed: A corrective action is requested of KGI Securities in accordance with Article 65 of the Securities and Exchange Act, and a fine of NT$240,000 is imposed on the firm in accordance with subparagraph 4, paragraph 1, Article 178-1 of the same Act.
Visitor: 849   Update: 2022-03-17
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