1.     Date of sanction: November 7, 2025
2.     Object of sanction: Mega Securities Co., Ltd. (hereinafter referred to as “Mega Securities”).
3.     Legal basis for the sanction: Subparagraph 4, Paragraph 1, Article 178-1 of the Securities and Exchange Act; and Paragraph 2, Article 2 of the Regulations Governing Securities Firms.
4.     Facts of violation: The Financial Examination Bureau of the Commission conducted a general business inspection of Mega Securities from May 5 to May 22, 2025, and found that when the leverage ratio of an inverse ETF was increased to two times, Mega Securities still accepted purchase orders entrusted by non-professional investors and handled the outsourced operations. Moreover, the company failed to remedially complete the required materiality assessment, risk assessment, and due diligence investigation within the statutory time limit, and the risk assessment report for the outsourced matters was not approved by the responsible supervisor. These deficiencies indicate that Mega Securities did not properly implement its internal control system and, upon examination, was found to have violated Paragraph 2, Article 2 of the Regulations Governing Securities Firms.
5.     Sanction imposed: A fine of NT$300,000 is imposed on Mega Securities in accordance with Subparagraph 4, Paragraph 1, Article 178-1 of the Securities and Exchange Act.