I.     Date of sanction: April 26, 2024
II.     Object of sanction: Taiwan Cooperative Securities Co., Ltd. (hereinafter referred to as Taiwan Cooperative Securities).
III.     Legal basis for the sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and paragraph 2, Article 2 and paragraph 22, Article 37 of the Regulations Governing Securities Firms.
IV.     Facts of violation: The Inspection Bureau of the Commission conducted an inspection on Taiwan Cooperative Securities from July 18, 2023 to August 4, 2023, and found the following deficiencies:
(I)    In the qualification review process for accepting customer applications to become professional investors, no evidence data was requested and no reasonable investigation was conducted.
(II)    When handling entrusted trading of foreign securities, the account statements sent to clients did not include the status of custody of the purchased foreign securities at the custodian institution.
(III)    No price deviation inspection was conducted for the outright sale and buyback of foreign bonds with a reverse repurchase agreement.
(IV)    For customers who applied for a maximum daily trading limit of NT$5,000 thousand or above across branches, no photocopy or transcription of the customers' qualification certificates or relevant data was retained for future reference.
(V)    During the period of working from home, the trading personnel of the proprietary trading department did not use the company’s virtual private network (VPN) to conduct the proprietary trading business in accordance with regulations. In addition, the period in which the proprietary trading unit allowed the authorized trading personnel to use VPN to connect to the personal business computer at the head office for work exceeded the actual period of working from home.
(VI)    After processing the declaration of suspected money laundering transactions, the firm did not report to the Investigation Bureau, Ministry of Justice after being approved by the responsible supervisor and reviewed by the general manager.
V.     Sanction imposed: A fine of NT$300,000 is imposed on Taiwan Cooperative Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.
Contact unit: Section Chief Lo, Securities Firm Management Group, Securities and Futures Bureau
Tel: (02) 2774-7286
If you have any questions, please write to mail