1.Date the fine was imposed: 15 September 2020

2.Recipient of the fine : IBF Futures Co., Ltd. (hereinafter "IBF Futures")

3.Legal basis of the fine : Article 2, paragraph 1, and paragraph 2 of Regulations Governing Futures Commission Merchants. Article 4, paragraph 1, subparagraph 3, and Article 6, paragraph 2 of Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets

4.Facts of the violation and reasons : IBF Futures engages in futures brokerage business with approval from the Financial Supervisory Commission (FSC). As it has not established an effective internal control system, there is a lack of supporting information retained to verify whether the appointed futures trading assistant has explained in detail to the trader the regulations concerning the applicable haircut rate and collateral ratio limit of the pledging of securities as margin collateral, and it is obvious that the effectiveness of the design and implementation of the company''s internal control system is insufficient. Besides, the fact that the company allows a trader to apply for a withdrawal of the aforementioned collateral securities when the value in the trader’s equity amount is negative. All such facts were found to be in violation of futures regulations.

5.Resulting fine: An administrative fine of NT$240,000 was imposed on IBF Futures pursuant to Article 119, paragraph 1, subparagraph 2 of the Futures Trading Act.