Securities and Futures Bureau

Financial Supervisory Commission’s disciplinary action recipient: Original copy Date of issue: October 25, 2012 Issue number: Financial Management Securities Penalty No. 11203579781 Person punished: President Securities Corporation Unified number of profit-making enterprises of a joint stock company: 23218183 Address: Name of representative or manager: Lin oo 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 act, NT$240,000 was disbursed Yuan fine. Facts: The Taiwan Stock Exchange Co., Ltd. conducted an inspection on the Nanjing Branch of the person being punished on June 14 and 15, 2012, and found that the former entrusted trading business employee of the branch, Lu Oo (hereinafter referred to as Lu Yuan), had been kept on behalf of the client. The circumstances of the payment, and the company’s failure to file employee lawsuit reports within the prescribed time limit, show that the person being punished has not fulfilled its supervisory and management responsibilities and failed to implement the internal control system, and has violated Article 2, Item 2 and Article 2 of the Securities Dealers Management Rules. Article 4, Item 2 and Article 37, Item 18. 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; the same as Article 4, Paragraph 2 of the Rules, If a securities firm or its directors, supervisors, and employees are involved in a lawsuit, arbitration, or are a debtor for enforcement due to operating or engaging in securities business, or if a securities firm is a bankrupt, has a bank refunding a check, or refusing to accept transactions, they should inform or Declaration must be made within five business days from the date of the fact; Paragraph 18 of Article 37 of the same rules stipulates that securities firms engaged in securities business shall not keep securities, money, seals or passbooks on behalf of customers. 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 Taiwan Stock Exchange Co., Ltd. conducted an inspection on the Nanjing Branch of the person being punished on June 14 and 15, 2012, and found that Mr. Lu, a former entrusted trading business employee of the person being punished, had kept money on behalf of clients and failed to comply with the regulations. It stipulates a time limit for filing lawsuits for employees, and verifies violations of Article 4, Item 2 and Article 37, Item 8 of the Securities Dealers Management Rules. 3. The above-mentioned deficiencies indicate that the person being punished has not implemented the internal control system and has violated the provisions of Article 2, Item 2, Article 4, Item 2, and Article 37, Item 8 of the Securities Dealers Management Rules. Article 178-1, paragraph 1, paragraph 4 of the Exchange Act stipulates that the disposition 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: President Securities Corporation Co., Ltd. (To be served: Representative: Mr. Lin oo) Copies: Taiwan Stock Exchange Co., Ltd. (representative: Mr. Lin oo), Securities Over-the-Counter Trading Center of the Republic of China (representative: Mr. Chen oo), China Securities Regulatory Commission The Securities Business Association of the Republic of China (representative Mr. Chen oo), the Accounting Office of the Securities and Futures Bureau of the Association, the Secretary’s Office of the Securities and Futures Bureau, the Financial Supervisory Commission of the Securities Dealers Management Group of the Securities and Futures Bureau Recipients of the tribunal letter: If the original copy is issued, the date of issuance: Document No. issued on October 25, 2012 of the Republic of China: Financial Management Securities No. 1120357978 Person to be punished: Luoo National identity card unified number or foreigner’s nationality and residence permit number: ooooo Address: Omitted Subject: Order President Securities Corporation Co., Ltd. (hereinafter referred to as Uni-President Securities) shall suspend the execution of the punished person's business for two months and report the execution status to the meeting for reference within 10 days from the day after the punishment is served. (In addition, the person being punished is not currently employed by a securities firm. Please request the Taiwan Stock Exchange Co., Ltd., the recipient of the copy, to record and manage it.) Facts: The Taiwan Stock Exchange Co., Ltd. Uni-President Securities Nanjing Branch conducted an inspection and found that the person being punished had kept money on behalf of clients, which was found to have violated the provisions of Article 18, Paragraph 2, Paragraph 11 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Dealers. Reasons and legal basis: 1. According to Article 18, Paragraph 2, Paragraph 11 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Firms, the person in charge and business personnel of a securities firm shall not keep securities, money, seals or passbooks on behalf of clients. . In addition, according to Article 56 of the Securities and Exchange Act, if the competent authority discovers that the directors, supervisors and employees of a securities firm have violated this Act or other relevant laws and regulations, which is enough to affect the normal execution of the securities business, it may order the securities firm at any time. The business shall cease its operations for less than one year. 2. The Taiwan Stock Exchange Co., Ltd. conducted an inspection on Uni-President Securities Nanjing Branch on June 14 and 15, 2012, and found that the person subject to punishment had kept money on behalf of customers, and had violated the rules of the securities firm’s responsible person and business personnel. Article 18, Paragraph 2, Paragraph 11 of the 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: President Securities Corporation Co., Ltd. (To be served: Representative: Mr. Lin oo), Lu oo Copy: Taiwan Stock Exchange Co., Ltd. (Representative: Mr. Lin oo), Securities Over-the-Counter Trading Center of the Republic of China (Representative: Mr. Chen oo) ), Securities Business Association of the Republic of China (representative Mr. Chen oo)