Disciplinary Action on Capital Investment Trust Corporation for Violation of Laws
The Financial Supervisory Commission (hereinafter referred to as the FSC) has made a resolution on the disciplinary action on Capital Investment Trust Corporation (hereinafter referred to as Capital Investment Trust) for violation of laws. During its business inspection, the FSC found that Capital Investment Trust violated relevant laws and regulations and issued a warning and imposed a fine of NT$1.2 million in accordance with relevant laws and regulations, and ordered Capital Investment Trust to dismiss its former fund manager XX Huang from his duties.
1. Date of disciplinary action: April 21, 2020
2. Objects of disciplinary action: Capital Investment Trust Corporation and its former fund manager XX Huang.
3. Legal basis for the disciplinary action: Paragraphs 1 and 2 of Article 77, paragraph 1 of Article 103, Article 104 and paragraph 7 of Article 111 of the Securities Investment Trust and Consulting Act, and subparagraph 1, paragraph 2 of Article 13 and paragraphs 1 and 2 of Article 14 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises.
4. Fact of law violation: During its business inspection, the FSC found that the former fund manager XX Huang of Capital Investment Trust used the securities accounts of others to trade the same stocks as those of the funds under his management based on the information obtained from his position for the interests of himself or others; the transaction amount was huge but was not declared according to the regulations. It was confirmed that the act had violated securities investment trust enterprise related laws and regulations; in addition, Capital Investment Trust did not effectively manage its network security, thus enabling XX Huang to use the company’s wireless network during work to trade stocks for his interests or others and that the company failed to fulfill its responsibility of supervision of the violation committed by XX Huang. It was verified that these were missing at Capital Investment Trust.
5. Disciplinary action imposed:
(1) In accordance with Article 104 of the Securities Investment Trust and Consulting Act, Capital Investment Trust is ordered to dismiss its former fund manager XX Huang from his duties.
(2) In accordance with paragraph 1 of Article 103 and paragraph 7 of Article 111 of the Securities Investment Trust and Consulting Act, a warning is issued and a fine of NT$1.2 million is imposed on Capital Investment Trust.
Contact unit: Miss Lin, Section Chief of SITE and SICE Group, Securities and Futures Bureau
If you have any questions, please write to:FSCmail
Visitor： 547 Update： 2020-05-11