Securities and Futures Bureau

Financial Supervisory Commission’s disciplinary action recipient: Original copy Date of issue: October 26, 2012 Issue number: Financial Management Securities Penalty No. 1120349362 Person punished: Mega Securities Unified number of profit-making enterprises of a joint stock company: 23474649 Address: Name of representative or manager: Chen ○○ Address: Brief 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 conduct, the handling of NT$24 A fine of 10,000 yuan. Facts: The Taiwan Stock Exchange Co., Ltd. (hereinafter referred to as the Stock Exchange) conducted an inspection on the Hsinchu Branch of the person being punished on May 2 and 3, 2012, and found that the entrusted trading business person Lin ○○ (hereinafter referred to as Lin Yuan) There are cases of custody of delivery funds on behalf of clients, agency delivery services, and borrowing funds from clients. The above defects show that the person being punished has not implemented the internal control system and has violated Article 2, Item 2 and Article 37 of the Securities Dealers Management Rules. The circumstances specified in paragraphs 11 and 18. Reasons and legal basis: 1. According to Article 2, Paragraph 2 of the Securities Dealers Management Rules, the business operations of securities firms shall be conducted in accordance with laws, articles of association and the established internal control system; the same as Article 37, Paragraph 11 and Paragraph 1 of the Rules Article 18 stipulates that securities firms are not allowed to accept employees of the company delivering securities on behalf of others and are not allowed to keep money on behalf of clients. 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. 2. The stock exchange conducted an inspection on the Hsinchu branch of the person being punished on May 2 and 3, 2012, and found that between February 11, 2011 and February 10, 2012, Lin had kept delivery funds on behalf of clients. Providing delivery services and borrowing money from clients have violated the provisions of Article 18, Paragraph 2, Paragraph 9, Paragraph 11 and Paragraph 17 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Firms. 3. The deficiencies reported by the forest officer indicate that the person being punished has not implemented the internal control system and has violated the provisions of Article 2, Item 2, Article 37, Paragraph 11 and Article 18 of the Securities Dealers Management Rules, and the securities transactions were carried out 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: Mega Securities Co., Ltd. (To be served: Representative: Ms. Chen ○○) Copy: Taiwan Stock Exchange Co., Ltd. (Representative: Mr. Lin ○○), Securities Over-the-Counter Trading Center of the Republic of China (Representative: Mr. Chen ○○ ), Securities Business Association of the Republic of China (representative Mr. Chen ○○), Securities and Futures Bureau (Accounting Office), Securities and Futures Bureau (Secretary Office), Securities and Futures Bureau (Securities Management Group) -------- -------------------------------------------------- -------------------------------------------------- Recipient of the Financial Supervisory Commission's ruling: If the original copy is issued: October 26, 112, Issuing number: Financial Management Securities No. 11203493621 Recipient: ○○○ National identity card unified number or the nationality of the foreigner And residence permit number: ○○○○○ Address: Omitted Subject: Order Mega Securities Co., Ltd. (hereinafter referred to as Mega Securities ) shall suspend the execution of the punished person's business for three months, from December 6, 2020 to March 5, 2013, and report the execution status to the meeting for review within 10 days from the day after the punishment is served. Facts: The Taiwan Stock Exchange Co., Ltd. (hereinafter referred to as the Stock Exchange) announced on May 2 and 3, 2012 Mega Securities The Hsinchu Branch conducted an inspection and found that the person being punished had kept delivery funds on behalf of clients, provided delivery services, and had borrowed money from clients. It was found that the person subject to punishment had violated Article 18, Paragraph 2, Paragraph 9, of the Rules for the Management of Responsible Persons and Business Personnel of Securities Dealers. The provisions of paragraphs 11 and 17. Reasons and legal basis: 1. According to the provisions of Article 18, Paragraph 2, Paragraph 9, Paragraph 11 and Paragraph 17 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Dealers, business personnel are not allowed to borrow money from clients or keep delivery money on behalf of clients. , acting on behalf of others to deliver securities, etc. In accordance with Article 56 of the Securities and Exchange Act, if the competent authority discovers that an employee of a securities firm has violated this Act or relevant laws and regulations, thereby affecting the normal execution of securities business, the competent authority may order the affiliated securities firm to cease its business for less than one year. Execute or remove their duties. 2. On May 2 and 3, 2012, the stock exchange Mega Securities The Hsinchu branch conducted an inspection and found that the person subject to punishment had kept delivery funds on behalf of customers, provided delivery services on behalf of customers, and had borrowed money from customers from February 11, 2011 to February 10, 2020. It was verified that he had violated the regulations of the person in charge of the securities firm. and Article 18, Paragraph 2, Paragraph 9, Paragraph 11 and Paragraph 17 of the Business Personnel Management Rules. 3. If the violation is revealed, and the behavior of the person being punished has affected the normal execution of the securities business, the punishment shall be in accordance with the provisions of Article 56 of the Securities and Exchange Act. Note: If the person subject to punishment is dissatisfied with this punishment, he should submit a written petition through this Association (County Citizen of Banqiao District, New Taipei City) in accordance with 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, Avenue) filed a petition with the Executive Yuan. However, in accordance with Article 93, Paragraph 1 of the Appeals Act, unless otherwise provided by law, the filing of an appeal does not stop the execution of this sanction. original: Mega Securities Co., Ltd. (To be served: Representative: Ms. ○○○), ○○○ Copy: Taiwan Stock Exchange Co., Ltd. (Representative: Mr. ○○○), Securities Over-the-Counter Trading Center of the Republic of China (Representative) Mr. ○ ○○), Securities Business Association of the Republic of China (Representative Mr. ○○○)