I.    Date of sanction: January 18, 2022
II.    Object of sanction: Fubon Securities Co., Ltd. (hereinafter referred to as Fubon Securities).
III.    Legal basis for the sanction: Article 65 and sub-paragraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act and paragraph 2, Article 2 of the Regulations Governing Securities Firms.
IV.    Facts of violation: Fubon securities failed to keep the audio record of customers’ telephone orders when accepting warrant applications from silver-hair customers and was therefore unable to fully confirm whether or not such customers met professional investor qualifications and did not fulfill its due diligence responsibility; the firm recommended the trading of foreign securities by telephone to professional investors who did not sign the written recommendation contract, as well as non-professional investors over the age of 70; some of the firm’s associated persons accepted the telephone entrustment of securities trading by agents of customers without the customers’ power of attorney in place, did not start the processing mechanism of the customer complaint handling group after accepting third-level complaints of customers and did not keep the judgment criteria record for not starting the mechanism. These facts show that Fubon Securities failed to fulfill its responsibility of supervision and management and did not implement the internal control system; these are verified to have violated paragraph 2, Article 2 of the Regulations Governing Securities Firms.
V.    Sanction imposed: A corrective action is requested of Fubon Securities in accordance with Article 65 of the Securities and Exchange Act and a fine of NT$480,000 is imposed on the firm in accordance with sub-paragraph 4, paragraph 1, Article 178-1 of the same Act.
Contact unit: Section Chief Wu, Securities Firms Division, Securities and Futures Bureau
Tel: 02-2774-7216
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