Sanction on Masterlink Securities Co., Ltd.for Violation of Securities Management Related Laws and Regulations
2022-10-05
I. Date of sanction: October 5, 2022
II. Object of sanction: Masterlink Securities Co., Ltd. (Masterlink Securities) and related personnel.
III. Legal basis for the sanction: Article 56 and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, paragraph 2, Article 2 and paragraphs 5 and 18, Article 37 of the Regulations Governing Securities Firms, and subparagraphs 3 and 11, paragraph 2, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
IV. Facts of violation: The Taiwan Stock Exchange Corporation conducted an audit of the Songde Branch of Masterlink Securities on November 22 and 23, 2021, and found that XX Huang, an associated person, accepted customers' discretionary orders to trade securities, and kept funds and seals on behalf of customers. In addition, it was found that Masterlink Securities failed to strictly control the account opening contracts of accounts that had not been completely opened, and failed to follow the necessary procedures for handling customer complaints. The deficiencies above indicate that Masterlink Securities has not strictly implemented their internal control system, and the firm is verified to have violated paragraph 2, Article 2 and paragraphs 5 and 18, Article 37 of the Regulations Governing Securities Firms.
V. Sanction imposed:
(I) On the firm: A fine of NT$240,000 is imposed in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.
(II) On the personnel: Masterlink Securities is ordered to suspend the business execution of XX Huang, the former associated person of its Songde Branch, for 6 months in accordance with Article 56 of the Securities and Exchange Act.
II. Object of sanction: Masterlink Securities Co., Ltd. (Masterlink Securities) and related personnel.
III. Legal basis for the sanction: Article 56 and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, paragraph 2, Article 2 and paragraphs 5 and 18, Article 37 of the Regulations Governing Securities Firms, and subparagraphs 3 and 11, paragraph 2, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
IV. Facts of violation: The Taiwan Stock Exchange Corporation conducted an audit of the Songde Branch of Masterlink Securities on November 22 and 23, 2021, and found that XX Huang, an associated person, accepted customers' discretionary orders to trade securities, and kept funds and seals on behalf of customers. In addition, it was found that Masterlink Securities failed to strictly control the account opening contracts of accounts that had not been completely opened, and failed to follow the necessary procedures for handling customer complaints. The deficiencies above indicate that Masterlink Securities has not strictly implemented their internal control system, and the firm is verified to have violated paragraph 2, Article 2 and paragraphs 5 and 18, Article 37 of the Regulations Governing Securities Firms.
V. Sanction imposed:
(I) On the firm: A fine of NT$240,000 is imposed in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.
(II) On the personnel: Masterlink Securities is ordered to suspend the business execution of XX Huang, the former associated person of its Songde Branch, for 6 months in accordance with Article 56 of the Securities and Exchange Act.
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Update：
2022-11-02