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Sanction on BankTaiwan Securities Co., Ltd. for Violation of Securities Management Related Laws and Regulations

2022-12-29
I.        Date of sanction: December 29, 2022
II.        Object of sanction: BankTaiwan Securities Co., Ltd. (BankTaiwan Securities).
III.    Legal basis for the sanction: Subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act, and paragraph 2, Article 2 and paragraph 2, Article 28 of the Regulations Governing Securities Firms.
IV.    Facts of violation: 
(I)        The spouse of the company's internal personnel has not changed her  account to an exclusive account after opening an account and obtaining the internal personnel qualification or status; the internal personnel account was not cancelled or changed to a general consignment account after the internal personnel resigns or leaves the position.
(II)        In handling the internal personnel's conflict of interest check, no check mechanism was established for orders placed at the same network location (IP) across business sites, and orders placed by internal personnel and customers at the same time point.
(III)        In handling consigned securities trading business, no control mechanism was established for sending customer statements to the email box used by internal personnel.
(IV)        There is no consolidated control over the credit line for connected accounts with the same trading agency or mailing address.
(V)        No price inspection procedure was established for conducting self-trading of foreign securities.
(VI)        In the public subscription process, for those with the same network IP address or the same voice phone sender number, it was not verified whether any customer used another person's name or pretended to be another person to make a subscription and kept records.
V.        Sanction imposed: A fine of NT$480,000 is imposed on BankTaiwan Securities in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.
 
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  • Update: 2023-01-03
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