Securities and Futures Bureau

Financial Supervisory Commission’s disciplinary action recipient: Original copy Date of issuance: February 5, 2013 Issue number: Financial Management Securities Penalty No. 11203549191 Penalty recipient: 大展證券股份有限公司 For-profit enterprise unified number: 22955802 Address: 17F, 17F-1, 2, and 3, No. 17, Section 1, Chengde Road, Taipei City Name of representative or manager: Li ○○ Address: No. 17, Section 1, Chengde Road, Taipei City Floor, Floor 17-1, Floor 2, and Floor 3. Purpose: In accordance with the provisions of Article 178-1, Paragraph 1, Paragraph 4 of the Securities and Exchange Act at the time of the act, the person punished shall be fined NT$540,000. Facts: The Inspection Bureau of the Chamber of Commerce conducted a general business inspection on the person subject to punishment from February 16, 2020 to March 6, 2020. It was found that the business personnel accepted the company director’s unauthorized use of the phone to place orders on behalf of customers, and the person subject to punishment did not Directors who participate in the daily morning meetings of the self-operated department are included in the conflict of interest review, there are no control measures for executing transactions instructed by others other than senior customers over the phone, and no transaction declaration is required for senior customers to trade high-risk products. Failure to establish remote connection management standards for external personnel and retain inspection data for reference, failure to formulate a personal data file security maintenance plan and personal data processing methods after business termination, failure to set up a personal data management unit and regularly submit self-assessment reports to the board of directors Defects such as the resolution or the approval of the management department authorized by it and the failure to regularly check and confirm the current status of the personal data held show that the person being punished has not fulfilled its supervisory and management responsibilities and implemented the internal control system, and has violated Article 1 of the Securities Dealers Management Rules. Article 2, paragraph 2, and Article 37, paragraph 22. Reasons and legal basis: 1. According to Article 2, Paragraph 2 of the Securities Dealers Management Rules, the business of a securities firm shall be conducted in accordance with laws, articles of association and the established internal control system; Article 37, Paragraph 22 of the same law, Securities firms operating securities businesses shall not engage in any other conduct that violates securities management laws or regulations that are required or prohibited by the Commission. In accordance with the provisions of Article 178-1, Paragraph 1, Paragraph 4 of the Securities and Exchange Act at the time of the act, a securities firm that fails to implement the internal control system shall be fined not less than NT$240,000 but not more than NT$4.8 million (30 after May 10, 2020). A fine of not less than 10,000 yuan but not more than 6 million yuan). 2. The Association conducted a general business inspection on the person being punished from February 16, 2012 to March 6, 2012, and found that the person being punished had the following deficiencies: (1) Director Zhu ○○ of the company on January 12, 2012 and On the 13th, a customer who did not authorize him to act as an agent placed an order over the phone. The salesperson Zhang ○○ still accepted the order and checked the transaction method in the power of attorney as face-to-face entrustment. The directors and salespersons acted in violation of the regulations of the person in charge of the securities firm and the salesperson respectively. Article 18, Paragraph 2, Paragraph 17 and Paragraph 20 of the Business Personnel Management Rules stipulate that the person subject to punishment violated the provisions of Article 2, Paragraph 2 and Article 37, Paragraph 22 of the Securities Dealers Management Rules. (2) Director Zhu ○○ of the company participated in the daily morning meeting of the self-operated department. The content of the meeting was stock market conditions and information on available investment targets, but it was not included in the conflict of interest review. For example, the account of director Zhu ○○ in 2011 and A total of 95 transactions of the same stock were bought and sold in the self-operated account on the same day, which violated the provisions of CA-11210 "Entrusted Trading and Transaction Operations" (6) of the Standard Specification for the Internal Control System of Securities Firms. (3) Handling the consumer protection of elderly customers, failing to formulate control measures for the execution of transactions instructed by others other than elderly customers over the phone, and failing to collect transaction declarations for elderly customers trading high-risk commodities, violating the "Securities Commerce of the Republic of China" Articles 9 and 10 of the "Self-regulatory Code for Financial Services Provided to Elderly Customers by Securities Dealers of the Trade Association". (4) Management of information security operations, failure to establish remote connection management standards for external personnel to log in to the company's internal systems via the Internet, and retain inspection data for future reference, to detect violations of securities firms' internal control system standards Standard CC-17010 "Network Security Management" (1) 8. Regulations. (5) Handling personal data security maintenance operations, failing to formulate a personal data file security maintenance plan and personal data processing methods after business termination, failing to set up a personal data management unit and regularly submit self-assessment reports to the board of directors for resolution or with its authorization Approval by the management department, and failure to regularly check and confirm the current status of the personal data held is a violation of Article 3, Item 1, Article 15, and Article 4 of the Personal Data File Security Protection Measures for Non-Governmental Agencies designated by the Association and the internal control of securities firms. System Standard Specification CC-18000 "Access Control" (5) Regulations. 3. The above-mentioned deficiencies show that the person being punished failed to fulfill his supervisory and management responsibilities and failed to implement the internal control system. He has violated the provisions of Article 2, Item 2 and Article 37, Item 22 of the Securities Dealers Management Rules. When conducting securities transactions in compliance with the regulations, Article 178-1, Paragraph 1, Paragraph 4 of the Act stipulates that the punishment shall be as intended. Payment method: 1. Payment deadline: Pay within 10 days from the day after this sanction is served. 2. Please make payment according to the precautions on the payment slip attached to the (agency). Notes: 1. If the person subject to punishment is dissatisfied with this punishment, he shall file a petition through this Association (Banqiao District, New Taipei City) in accordance with the provisions of Article 58, Paragraph 1 of the Petition Law within 30 days from the day after the punishment is served. 18th Floor, No. 7, Section 2, Xianmin Avenue) filed a petition with the Executive Yuan. However, according to Article 93, Paragraph 1 of the Petition Act, unless otherwise provided by law, the filing of an appeal does not stop the execution of this sanction, and the person subject to the sanction shall still pay the fine. 2. If the person subject to punishment fails to pay the fine within the payment period specified in this punishment, the person shall be transferred to any branch of the Administrative Enforcement Agency of the Ministry of Justice for administrative enforcement in accordance with the proviso of Article 4, Paragraph 1 of the Administrative Enforcement Act. original: 大展證券股份有限公司 (To be served: Representative, Ms. Lee ○○) Copy: Taiwan Stock Exchange Co., Ltd. (representative, Mr. Lin ○○), Securities Over-the-Counter Trading Center of the Republic of China (representative, Mr. Chen ○○), Chung Hwa Securities Business Association of the Republic of China (representative Mr. Chen ○○), Securities and Futures Bureau (Accounting Office), Securities and Futures Bureau (Secretary’s Office), Securities and Futures Bureau (Securities Dealers Management Group) of the Association