I.     Date of sanction: July 5, 2024
II.     Objects of sanction: Hua Nan Investment Trust Co., Ltd. (hereinafter referred to as Hua Nan Investment Trust) and its former fund manager XX Lu
III.     Legal basis for the sanctions: Article 69, Article 102, and paragraph 7, Article 111 of the Securities Investment Trust and Consulting Act; subparagraph 1, paragraph 2, Article 13, and paragraphs 1 and 2, Article 14 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises; paragraph 2, Article 6 of the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets.
IV.     Facts of violation: During his tenure as the fund manager of Hua Nan Investment Trust and before the inspection of and discovery by the Commission, XX Lu, the former manager of Hua Nan Investment Trust, used the information acquired on his job to trade the same stocks through specific persons’ accounts during the stock trading period of the fund account, and did not declare it to the company; in addition, Hua Nan Investment Trust had the deficiency of not complying with the regulations in its printing of fund prospectuses. These are verified to have violated securities investment trust related laws and regulations.
V.     Sanction imposed:
(I)     On the company: A correction notice is issued in accordance with Article 102 of the Securities Investment Trust and Consulting Act, and a fine of NT$600,000 is imposed in accordance with paragraph 7, Article 111 of the same Act.
(II)     On the personnel:     Hua Nan Investment Trust is ordered to suspend the business execution by XX Lu, its former fund manager, for six months in accordance with Article 104 of the Securities Investment Trust and Consulting Act.

Contact unit: Section Chief Tsai, SITE and SICE Group, Securities and Futures Bureau
Tel: 02-2774-7426
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