1.    Date of sanction: December 1, 2025
2.    Object of sanction: Hua Nan Securities Co., Ltd. (hereinafter referred to as “Hua Nan Securities”) and XX Huang, the person responsible for the act thereof.
3.    Legal basis for the sanction: Subparagraph 4, Paragraph 1, Article 14-5; Subparagraph 2, Paragraph 1, Article 178; Subparagraph 4, Paragraph 1, Article 178-1 and Article 179 of the Securities and Exchange Act; and Paragraph 2, Article 2 of the Regulations Governing Securities Firms.
4.    Facts of violation: From June 2 to 18, 2025, the Examination Bureau of the Commission conducted a general business inspection of Hua Nan Securities and found that Hua Nan Securities failed to approve or reject client trading limits in accordance with the company’s established approval levels; accepted orders from non-professional investors for the purchase of foreign virtual asset ETFs, inverse ETFs exceeding one times, and bonds issued by issuers whose long-term debt credit rating was below A-; did not submit to the board for approval the assessment methods used to verify whether professional investors possess sufficient professional knowledge of financial products and trading experience; granted professional investor status to clients without their submitting or possessing relevant financial product trading experience; and sent board meeting materials without proper encryption. These findings indicate that Hua Nan Securities failed to properly implement its internal control system, and it is determined that this violates Paragraph 2, Article 2 of the Regulations Governing Securities Firms; additionally, regarding board discussions on matters involving directors’ own conflicts of interest, the company failed to submit such matters to the audit committee for prior review, and it is determined that this violates Subparagraph 4, Paragraph 1, Article 14-5 of the Securities and Exchange Act.
5.    Sanction imposed:
(I)    Pursuant to Subparagraph 4, Paragraph 1, Article 178-1 of the Securities and Exchange Act, a fine of NT$300,000 was imposed on Hua Nan Securities.
(II)    Pursuant to Subparagraph 2, Paragraph 1, Article 178 and Article 179 of the Securities and Exchange Act, a fine of NT$240,000 was imposed on the person responsible for the act of Hua Nan Securities.
Contact unit: Section Chief Weng, Securities Firms Division, Securities and Futures Bureau
Tel: (02)2774-7112
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