1.Date the fine was imposed: 21 January 2013
2.Recipient of the fine: KGI Securities Co., Ltd. ("KGI Securities") and its employee, Xu ○○
3.Legal basis of the fine: Article 9, paragraph 2 and Article 29, paragraph 2 of the Regulations Governing the Operation of Futures Introducing Broker Business by Securities Firms; Article 16, paragraph 2, subparagraph 6 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants.
4.Facts of the violation and reasons: In July of 2012, associated person Xu ○○ of the Yang Ming branch of KGI Securities accepted orders for futures transaction at a customer''s residence, failing to abide by the KGI Securities futures introducing broker internal control system. Further, by accepting orders for futures transaction from an agent with no power of attorney for the customer, KGI Securities and Xu ○○ violated futures management laws and regulations.
5.Resulting fine: An administrative fine of NT$120,000 was issued to KGI Securities in accordance with Article 119, paragraph 1, subparagraph 2 of the Futures Trading Act, and KGI Securities was further ordered to suspend associated person Xu ○○ from performing futures introducing broker business for a period of 1 month in accordance with Article 101, paragraph 1 of the same Act.