1.Date the fine was imposed: 11 June 2018.
2.Recipient of the fine: First Securities Co.,Ltd. (hereinafter referred as First Securities) and its associated person Zheng (hereinafter " Zheng").
3.Legal basis of the fine: Article 2, paragraph 2 and Article 55, subparagraph 16 of the Regulations Governing Futures Commission Merchants. Article 16, paragraph 2 of Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
4.Facts of the violation and reasons: First Securities is licensed to do the futures brokerage business by the Financial Supervisory Commission (FSC). Zheng was associated person at its Dadaocheng branch, has provided discretionary transaction services for futures traders, and entered an agreement of loss sharing; furthermore, the staff in charge of account opening for futures trader, and the self-inspection staff at that branch did not trace the improvement regarding noncompliance identified in the internal audit report on a continuing basis, which does not conform to the Company’s internal control system and relevant regulations. Such facts were found to be in violation of futures regulations.. Such facts were found to be in violation of futures regulations.
5.Resulting fine: An administrative fine of NT$240,000 was imposed on First Securities pursuant to Article 119, paragraph 1, subparagraph 2 of the Futures Trading Act; pursuant to Article 101, paragraph 1 of the same Act, First Securities was further ordered to suspend Cheng from performing futures business for 2 months.