1.     Date of sanction: January 15, 2025
2.     Object of sanction: KGI Securities Co., Ltd. (hereinafter referred to as KGI Securities) and its employee XX Kao.
3.     Legal basis for the sanctions: Article 56 and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, paragraph 2, Article 2 and paragraphs 13 and 18, Article 37 of the Regulations Governing Securities Firms, and subparagraphs 3, 9, 11 and 20, paragraph 2, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
4.     Facts of violation:
The Taiwan Stock Exchange Corporation conducted an audit of KGI Securities on May 13 to 14, 2024, and found that XX Kao, the associated person of the firm had made decisions on the selling prices and quantities of stocks on behalf of customers, engaged in loan extension to customers or acted as a medium for loans to customers, kept stamps and passbooks on behalf of customers, and traded securities on behalf of customers without their letters of authorization in place. These indicate that KGI Securities did not fulfill its responsibility to supervise and manage its employees, and did not properly implement its internal control system.
5.     Sanction imposed: A fine of NT$600,000 is imposed on KGI Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and KGI Securities is ordered to suspend the business execution of XX Kao for six months in accordance with Article 56 of the same Act.

Contact unit: Section Chief Tseng, Huang-Chun, Securities Firms Division, Securities and Futures Bureau
Tel: (02) 2774-7401
If you have any questions, please write to mail