1.    Date of sanction: August 22, 2025
2.    Object of sanction: Cathay Securities Investment Trust Co., Ltd. (hereinafter “Cathay Securities Investment Trust”) and its former fund manager, XX Tsai.
3.    Legal basis for the sanction: Paragraphs 1 and 2, Article 77, and Article 102 of the Securities Investment Trust and Consulting Act; Paragraphs 1 and 2, Article 14 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises; Article 30-1 of the Financial Consumer Protection Act; subparagraph 2, Paragraph 1, Article 22 of the Regulations Governing Securities Investment Trust Enterprises; and paragraph 9, Article 5 of the Regulations Governing Advertising, Solicitation, and Promotional Activities by Financial Service Providers.
4.    Facts of violation:
 (1) Cathay Securities Investment Trust commissioned an online marketing company to manipulate public opinion on internet forums. The promotional content posted through accounts on online forums highlighted investment returns. Upon investigation, it was found that the content could mislead people into believing that their principal was guaranteed or that profits were assured, constituting a violation of the relevant laws and regulations governing securities investment trusts.
 (2) Former fund manager XX Tsai of Cathay Securities Investment Trust, during their tenure as a fund manager, used other persons’ accounts to buy and sell the same individual stocks held in the company-managed fund accounts, and failed to report these personal transactions to the company. This conduct constitutes a violation of the relevant laws and regulations governing securities investment trusts.
5.    Sanction imposed:
(1) With respect to Facts of violation (1), in accordance with Article 102 of the Securities Investment Trust and Consulting Act, Cathay Securities Investment Trust was ordered to make corrections. Additionally, pursuant to subparagraph 1, paragraph 1, Article 30-1 of the Financial Consumer Protection Act, a fine of NT$600,000 was imposed on Cathay Securities Investment Trust.
(2) Regarding Facts of violation (2), after considering the circumstances of the misconduct, and pursuant to Article 104 of the Securities Investment Trust and Consulting Act, Cathay Securities Investment Trust is ordered to suspend former fund manager XX Tsai from performing business operations for six months.


Contact unit: Section Chief Lin, Securities Investment Trust and Consulting Division, Securities and Futures Bureau
Tel: 02-2774-7490
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