1.    Date of sanction: September 3, 2025
2.    Objects of sanction: SinoPac Securities Corporation (hereinafter referred to as SinoPac Securities) and its employee XX Shih (hereinafter referred to as Shih).
3.    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 of the Regulations Governing Securities Firms; item 2, subparagraph 3, paragraph 1, Article 22 of the Regulations Governing Offshore Structured Products; and subparagraph 13, paragraph 2 and paragraph 3, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
4.    Facts of violation: Taipei Exchange Corporation conducted an audit of the Dunbei Branch of SinoPac Securities on February 19, 2025. Additionally, the Taiwan Stock Exchange Corporation, together with the Taiwan Securities Association, conducted an audit of the same branch from March 6 to 7, 2025. They found that an associated person, Shih, had kept blank transaction instruction forms signed by customers in advance, did not place orders according to customer instructions, and failed to fulfill the obligation to inform customers before handling their entrusted purchases of offshore structured products. These facts indicate that SinoPac Securities did not fulfill its supervisory and management responsibilities towards its employees and did not implement its internal control system properly.
5.    Sanction imposed: A fine of NT$300,000 is imposed on SinoPac Securities in accordance with item 4, paragraph 1, Article 178-1 of the Securities and Exchange Act. Additionally, SinoPac Securities is ordered to suspend the business activities of its associated person, Shih, for two months in accordance with Article 56 of the same Act.
Contact unit: Securities Firms Division, Securities and Futures Bureau
Tel: (02) 2774-7130
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