Date of announcement 2020/12/24
Time of announcement 20:23:47
Date of events 2020/12/24
To which item it meets paragraph 39

Statement

1.Date of occurrence of the event:2020/12/24
2.Circumstances of the violation:KGI Securities and its branch manager
 (“Chiu”) failed to duly implement the company’s internal risk control
 system and supervise its employee, thus violating relevant securities
 regulations.
3.Monetary amount of fines:NT 3.36 million
4.Status of the injunction by the respective competent authority:
 KGI Securities was issued a warning by the FSC in accordance with Article
 66 of the Securities and Exchange Act and Article 100 of the Futures
 Trading Act. KGI Securities was also ordered to suspend Chiu from
 performing securities and futures business activities for six months.
5.Intended improvement measures:In addition to comply with the FSC’s order,
 KGI Securities will enhance its internal control mechanisms as well as
 regulatory compliance management.
6.Effect on the Company’s business operations:For a period of three months,
 KGI Securities is prohibited from applying for the followings: 1)
 increasing types of operations or lines of business; 2) setting up
 additional branches; 3) invest in securities, futures, financial or
 order entities in the domestic, overseas, and mainland China market;
 4) increase capital by cash or issue corporate bonds; 5) act as ETF
 liquidity provider; 6) issue ETN or increase ETN amount; 7) merger.
7.Any other matters that need to be specified:None