1.Date the fine was imposed: 13 May 2019

2.Recipient of the fine: KGI Futures Co.,Ltd. (hereinafter " KGI Futures ") and its former associated person Shen (hereinafter " Shen ").

3.Legal basis of the fine: Article 2, paragraph 2, and Article 55, subparagraph 17 and subparagraph 23 of 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: The Financial Supervisory Commission (FSC) has permitted KGI Futures to carry out proprietary futures trading business. Its former employer, Shen, had used the traders’ account to trade futures, and placed orders with other futures firms through mobile during trading hours on the Company’s business premises. Furthermore, KGI Futures does not have any control over mobile communication devices applicable to its staff of the proprietary trading business section in place. It is deemed a violation against the regulations of the management of futures. 

5.Resulting fine: An administrative fine of NT$120,000 was imposed on KGI Futures pursuant to Article 119, paragraph 1, subparagraph 2 of the Futures Trading Act; pursuant to Article 101, paragraph 1 of the same Act, KGI Futures was further ordered to suspend Shen from performing futures trading business for 3 months.