Disciplinary Action on Taiwan Cooperative Securities Co., Ltd. for Violation of Securities Management Laws and Regulations
2022-03-11
I. Date of sanction: March 11, 2022
II. Recipient of sanction: Taiwan Cooperative Securities Co., Ltd. (hereinafter "Cooperative 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 and paragraph 18, Article 37 of the Regulations Governing Securities Firms.
IV. Facts of violation:
(i) Failing to cancel or convert the status of accounts with insider qualifications or identities to exclusive accounts (98 *) when it accepted applications to open accounts for entrusted securities trading.
(ii) Failing to check and judge the opening accounts, and implement the credit limit control and management for related accounts accordingly.
(iii) Associated persons were found of misconducts with safekeeping deposit books of customers, trading securities as agent on behalf of others, and trading orders by non-electronic way.
(iv) Failing to establish the control mechanism to verify the abnormality in sending customers’ statements to the e-mail address used by the internal personnel of the securities firm.
(v) Failing to establish the price inspection procedures for the foreign bond trading.
(vi) Failing to retain the verification records of the subscribers participating in public subscription of securities to whom have used, or fraudulently used, the name of another person.
V. The disciplinary action: A fine of NT$480,000 is imposed on Cooperative 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. Recipient of sanction: Taiwan Cooperative Securities Co., Ltd. (hereinafter "Cooperative 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 and paragraph 18, Article 37 of the Regulations Governing Securities Firms.
IV. Facts of violation:
(i) Failing to cancel or convert the status of accounts with insider qualifications or identities to exclusive accounts (98 *) when it accepted applications to open accounts for entrusted securities trading.
(ii) Failing to check and judge the opening accounts, and implement the credit limit control and management for related accounts accordingly.
(iii) Associated persons were found of misconducts with safekeeping deposit books of customers, trading securities as agent on behalf of others, and trading orders by non-electronic way.
(iv) Failing to establish the control mechanism to verify the abnormality in sending customers’ statements to the e-mail address used by the internal personnel of the securities firm.
(v) Failing to establish the price inspection procedures for the foreign bond trading.
(vi) Failing to retain the verification records of the subscribers participating in public subscription of securities to whom have used, or fraudulently used, the name of another person.
V. The disciplinary action: A fine of NT$480,000 is imposed on Cooperative 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：
2022-05-09