1.    Date of sanction: September 23, 2025
2.    Object of sanction: Yuanta Securities Co., Ltd. (hereinafter referred to as “Yuanta Securities”) and its Associated Person, XX Liu.
3.    Legal basis for the sanction: Article 56, subparagraphs 1 and 5, Article 66, and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act; paragraph 2, Article 2, and paragraphs 4 and 18, Article 37 of the Regulations Governing Securities Firms; and subparagraphs 9, 10, and 11, paragraph 2, and paragraph 1, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
4.    Facts of violation: The Taiwan Stock Exchange Co., Ltd. conducted an audit of Yuanta Securities from May 13 to 14, 2025, and found that a former associated person, XX Liu, failed to adhere to the principles of honesty and integrity. Under the pretense of purchasing equity-linked notes (ELNs), Liu obtained funds from clients but in fact did not purchase the stated financial products, thereby misleading clients into believing that such transactions had taken place. In addition, Liu engaged in improper practices, including borrowing and lending funds with clients and holding clients’ bank passbooks for safekeeping. Furthermore, deficiencies were identified in Yuanta Securities’ execution and audit procedures regarding client care interviews.
5.    Sanction imposed: Pursuant to Article 56 of the Securities and Exchange Act, Yuanta Securities was ordered to remove XX Liu from the position and instructed to impose disciplinary measures on the responsible supervisory personnel internally. In addition, in accordance with paragraph 1, Article 66, and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, Yuanta Securities was sanctioned with a warning and a fine of NT$1.2 million. 
Contact unit: Securities Firms Division, Securities and Futures Bureau
Tel: (02)2774-7401
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