1.Date the fine was imposed: 3 February, 2021
2.Recipient of the fine: KGI Futures Co.,Ltd. (hereinafter " KGI Futures ").
3.Legal basis of the fine: Article 2, paragraph 1 and 2 of the Regulations Governing Futures Commission Merchants. Article 4, paragraph 1, subparagraph 3 and Article 6, paragraph 2 of the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets.
4.Facts of the violation and reasons: The major deficiencies of KGI Futures include: (1) failure to comprehensively assess the risk tolerance capability basing on customer financial and credit status to determine the trading limit; (2) relax trading limit without the customer submitting proof of financial resources; (3) failure to establish specifications of examination logic and process to compare insider and customer trading records; (4) sending customer statements to the email address of the associated person. Above facts were found in violation of futures related regulations.
5.Resulting fine: An administrative fine of NT$480,000 was imposed on KGI Futures pursuant to Article 119, paragraph 1, subparagraph 2 of the Futures Trading Act.