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Sanction on BankTaiwan Securities for Violation of Securities Management Related Laws and Regulations

2022-11-17
I.    Date of sanction: November 16, 2022
II.    Object of sanction: BankTaiwan Securities Co., Ltd. (BankTaiwan Securities).
III.    Legal basis for the sanction: Article 65 and subparagraph 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:
(I)    The manager accessed customer data not for business purposes, and this material deficiency was not immediately reported to the Audit Office of Taiwan Financial Holdings Co., Ltd.
(II)    Some associated persons logged in to the system using the administrator account to query customer data.
(III)    The “Measures on Access to Customer Data” failed to stipulate the approval procedure for unit supervisors to access customer data not required for business purposes.
(IV)    The “Key Points for the Management of Securities Brokerage Business Authority Levels” failed to stipulate the procedures and authority levels for unit supervisors to apply for front and back office system authorities; in addition, the application of managers of branch companies for the authority over front and back office system data needed not be reviewed and confirmed by senior executives of the head office.
(V)    The associated persons failed to specify the reasons for using the front office system to access customer data, and the head of the brokerage department failed to firmly verify and inquire the reasons.
V.    Sanction imposed: A correction is imposed on BankTaiwan Securities in accordance with Article 65 of the Securities and Exchange Act, and a fine of NT$240,000 is imposed according to subparagraph 4, paragraph 1, Article 178-1 of the same Act.
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  • Update: 2023-01-03
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