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Administrative Sanction

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Sanctions on Capital Securities Co., Ltd. and Its Employee for Violation of Securities Management-Related Laws and Regulations

1.     Date of sanction: April 8, 2024
2.     Objects of sanction: Capital Securities Co., Ltd. (hereinafter referred to as Capital Securities) and its associate person XX Hsu.
3.     Legal basis for the sanction: Article 56 and subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.
4.     Fact of violation: The Taiwan Stock Exchange Corporation conducted an inspection on the Tucheng branch of Capital Securities on November 7 and 8, 2023, and found that XX Hsu, its associate person, engaged in fund lending to customers and violated subparagraph 9, paragraph 2, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms. This shows that Capital Securities had not properly implemented its internal control system, and the firm is verified to have violated the provisions of paragraph 2, Article 2 of the Regulations Governing Securities Firms.
5.     Sanctions imposed: A fine of NT$300,000 is imposed on Capital Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and Capital Securities is ordered to suspend the business execution of XX Hsu, its associate person for one month in accordance with Article 56 of the same Act.
Contact unit: Section Chief Li, Securities Firm Management Group, Securities and Futures Bureau
Tel: (02) 2774-7483
If you have any questions, please write to the Commission’s feedback mailbox.
Visitor: 1512   Update: 2024-04-11