Securities and Futures Bureau

Financial Supervisory Commission's disciplinary action recipient: Original copy Date of issue: May 3, 2012 Issue number: Financial Management Securities Penalty No. 1120331339 Person punished: 第一金證券股份有限公司 Unified number of profit-making enterprises: abbreviated Address: abbreviated Name of representative or manager: Chen ○○ Address: abbreviated Purpose: The person subject to punishment shall be fined NT$24 in accordance with the provisions of Article 178-1, Paragraph 1, Paragraph 4 of the Securities and Exchange Act Ten thousand yuan. Facts: The Taiwan Stock Exchange Co., Ltd. (hereinafter referred to as the Stock Exchange) conducted an inspection on the Taoyuan Branch of the person being punished on October 31, 2011, and found that the head of the business department of the affiliated branch had loans with customers and accepted customers online. Entrusted transactions and other matters, as well as the fact that the person being punished accepted transactions entrusted by customers who did not sign the authorization letter, show that the person being punished has not fulfilled the supervision and management responsibilities and implemented the internal control system, and has violated Article 2 of the Securities Dealers Management Rules Article 2 and Article 37, paragraph 13. Reasons and legal basis: 1. According to the provisions of Article 2, Paragraph 2 of the Securities Dealers Management Rules, the business of securities firms shall be conducted in accordance with laws, articles of association and the established internal control system; the same provisions of Article 37, Paragraph 13 of the Rules, Securities firms engaged in securities business shall not accept the purchase, sale or delivery of securities by persons other than themselves or by agents who do not have a letter of appointment from the client. According to the provisions of Article 178-1, Paragraph 1, Paragraph 4 of the Securities and Exchange Act, securities firms that fail to implement internal control systems 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 Taoyuan branch of the person being punished on October 31, 2011, and found that the person being punished had the following deficiencies: (1) The head of the branch’s business department had a loan relationship with a customer, and the verification violated the securities firm’s regulations. Article 18, Paragraph 2, Paragraph 9 of the Rules for the Management of Responsible Persons and Business Personnel. (2) The head of the branch’s business department accepts client entrusted transactions online, which is inconsistent with the provisions of the Securities Firm’s Internal Control System Standards CA-11210 Entrusted Trading and Transaction Operations (16). (3) Accepting transactions entrusted by customers who have not signed the authorization letter is a violation of Article 37, Paragraph 13 of the Securities Dealers Management Rules. 3. The above-mentioned deficiencies indicate that the person being punished has failed to fulfill his supervisory and management responsibilities and failed to implement the internal control system, which has violated the provisions of Article 2, Item 2 and Article 37, Item 13 of the Securities Dealers Management Rules. In accordance with the Securities and Exchange Law Article 178-1, paragraph 1, paragraph 4 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: 第一金證券股份有限公司 (To be served: Mr. Chen ○○) Copies: Taiwan Stock Exchange Co., Ltd. (representative Mr. Lin ○○), Taiwan Securities OTC Trading Center (representative Mr. Chen ○○), Republic of China Securities Commercial Trade Association (representative Mr. Chen ○○), Securities and Futures Bureau (Accounting Office), Securities and Futures Bureau (Secretary’s Office), Securities and Futures Bureau (Securities Management Section) of the Association. Recipients of the Financial Supervisory Commission’s disciplinary letter: if Date of issue of original and copy: May 3, 112, Republic of China Issue number: Financial Management Securities No. 11203313392 Person to be punished: Jiang ○○ National identity card unified number or foreigner’s nationality and residence permit number: omitted Address: omitted Subject: omitted Order 第一金證券股份有限公司 (hereinafter referred to as First Securities ) Stop the execution of the punished person's business for one month, and report the execution status to the meeting for review within 10 days from the day after the punishment is served. Facts: The person being punished violated the provisions of Article 18, Item 2, Item 9 and Item 3 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Dealers, by having loans and borrowings from clients, and accepting entrusted transactions from clients via the line. Reasons and legal basis: 1. According to the provisions of Article 18, Paragraph 2, Item 9 and Item 3 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Firms, the persons in charge and business personnel of securities firms shall not make loans or borrow money from clients, and When a person performs business, he or she shall not do any of the acts prohibited by the Securities Dealers Management Act. 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. Taiwan Stock Exchange Co., Ltd. announced on October 31, 2011 First Securities The Taoyuan Branch conducted an inspection and found that the person being punished had borrowed money from customers and accepted customer entrusted transactions online. It was found that the person had violated Article 18, Item 2, Item 9 and Item 3 of the Rules for the Management of Persons in Charge and Business Personnel of Securities Dealers. Regulation. 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: 第一金證券股份有限公司 (Representative: Mr. Chen ○○), Mr. Jiang ○○ Copy: Taiwan Stock Exchange Co., Ltd. (Representative: Mr. Lin ○○), Securities Over-the-Counter Trading Center of the Republic of China (Representative: Mr. Chen ○○), Republic of China Securities Business Association (representative Mr. Chen○○)