Financial Sanctions Enforcement Hits Taiwan Cooperative Securities Co., Ltd.

Taiwanese Authorities Slap Fine on Taiwan Cooperative Securities Co., Ltd.

Taipei, April 26, 2024 - The Taiwanese authorities have imposed a fine of NT$300,000 on Taiwan Cooperative Securities Co., Ltd. for violating securities management-related laws and regulations.

Investigation Reveals Deficiencies in Company Operations

According to sources, the Inspection Bureau of the Commission conducted an investigation on Taiwan Cooperative Securities from July 18, 2023 to August 4, 2023, which revealed several deficiencies in the company’s operations. These include:

• Failure to conduct proper investigations during the qualification review process for accepting customer applications to become professional investors.
• Incomplete account statements sent to clients, lacking information on the custody of purchased foreign securities at custodian institutions.
• Neglect to conduct price deviation inspections for outright sales and buybacks of foreign bonds with reverse repurchase agreements.
• Failure to provide photocopies or transcriptions of qualification certificates or relevant data to customers who applied for maximum daily trading limits of NT$5,000 thousand or above across branches.

Additional Violations Uncovered

The investigation also revealed that the company’s proprietary trading department allowed authorized personnel to use virtual private networks (VPNs) to conduct business from home without proper supervision. Moreover, the period during which personnel were allowed to use VPNs exceeded the actual duration of remote work.

Furthermore, the firm was found to have failed to report suspected money laundering transactions to the Investigation Bureau, Ministry of Justice after approval by the responsible supervisor and review by the general manager.

Fine Imposed

The Securities and Exchange Commission has imposed a fine of NT$300,000 on Taiwan Cooperative Securities Co., Ltd. in accordance with subparagraph 4, paragraph 1, Article 178-1 of the Securities and Exchange Act.

For inquiries or further information, please contact:

• Section Chief Lo at the Securities Firm Management Group, Securities and Futures Bureau
  • Tel: (02) 2774-7286
  • Email: [insert email address]