1.Date of punishment: April 19, 2023
2.Party subject to punishment: IBF Securities Co., Ltd. (hereinafter referred to as IBF Securities) and former sales representative Chang OO (currently employed in Horizon Securities Co., Ltd. (hereinafter referred to as Horizon Securities).
3.Legal basis for penalty: Article 56, and Sub-paragraph 4, Paragraph 1, Article 178-1 of the Securities Trading Act; Sub-paragraph 9, Paragraph 2, Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms; Paragraph 2, Article 2 and Sub-paragraph 13, Article 37 of the Regulations Governing Securities Firms. . 
4.Facts of violation: The Taiwan Stock Exchange Corporation (TWSE) inspected IBF Securities (Beitou Branch) on April 11 and 12, 2022, as well as on July 7, July 8 and July 12 of the same year. It was discovered that former IBF Securities sales representative Chang OO had a loan with a client. IBF Securities did not verify the rationale for placing an order with the same IP address and did not maintain a record of the same IP address between the insider and the customer and between customers. The entrusted trading sales representative did not thoroughly review the items on the client’s credit information form (i.e., credit investigation and accepting trading entrusted by proxies other than the client and without the client’s letter of appointment), indicating that IBF Securities has not implemented an internal control system.
5.Penalty results: In accordance with Sub-paragraph 4, Paragraph 1 of Article 178-1 of the Securities’ Trading Act, IBF Securities was fined NT$480,000. According to Article 56 of the same act, Chang OO, a sales representative for Horizon Securities, was ordered to suspend business implementation for two months.