I.     Date of sanction: February 5, 2024
II.     Object of sanction: Tachan Securities Co., Ltd. (hereinafter referred to as Tachan Securities).
III.     Legal basis for the sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and paragraph 2, Article 2 and paragraph 22, Article 37 of the Regulations Governing Securities Firms at the time of the acts.
IV.     Facts of violation: The Inspection Bureau of the Commission conducted an inspection on Tachan Securities from February 16, 2023 to March 6, 2023, and found the following deficiencies:
(I)    The associate persons accepted unauthorized orders by phone from the company’s directors on behalf of customers from January 12 to 13, 2023.
(II)    The company did not include directors who participated in the daily morning meeting of the proprietary trading department as the subjects of conflict of interest reviews.
(III)    The company did not establish control measures for executing transactions of individuals other than elderly customers who placed orders by phone, and did not request a trading declaration from elderly customers for trading high-risk products.
(IV)    The company did not establish management standards for remote connection by external personnel, and did not keep inspection information for future reference.
(V)    The company did not establish a security maintenance plan for personal data files as well as personal data processing methods after business termination, did not set up a personal data management unit and regularly submit self-evaluation reports to the board of directors for resolution or to authorized business management departments for approval, and did not regularly verify the current status of personal data kept at the company.
V.     Sanction imposed: A fine of NT$540,000 is imposed on Tachan Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act at the time of the acts.
Contact unit: Section Chief Lo, Securities Firm Management Group, Securities and Futures Bureau
Tel: (02) 2774-7286
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