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Capital Futures Corp. for Violation of Laws and Regulations Governing Futures Business

1. Date the fine was imposed: 3 February, 2021. 
2. Recipient of the fine: Capital Futures Corp. (hereinafter " Capital 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 Capital Futures include: (1) failure to comprehensively assess the risk tolerance capability basing on customer financial and credit status to determine the trading limit; (2) the risk disclosure statement of account opening was not verbatim confirmed with the customers, but only one-time checked by the customers, meaning general  agreement; (3) there was no verification logic and system construction specified in internal person transaction control procedures; (4) sending customer statements to the email address of the associated person; (5) failure to issue notifications of high-risk accounts according to the risk system warnings when equity amount of future traders is less than the amount of maintenance margin required for the open positions. Above facts were found in violation of futures related regulations.
5. Resulting fine: An administrative fine of NT$600,000 was imposed on Capital Futures pursuant to Article 119, paragraph 1, subparagraph 2 of the Futures Trading Act.
Visitor: 522   Update: 2021-03-15