Date of announcement  2015/10/21

Time of announcement  18:24:56 
 
Date of events  2015/10/21 

To which item it meets paragraph 39
Statement 

1.Date of occurrence of the event: 2015/10/21
2.Circumstances of the violation:
A KGI Securities employee failed to properly execute internal risk control
on the creditworthiness of clients. In addition, the employee neglected to
follow internal procedures that are designed to forestall any impact on
market stability as regards execution of securities trading. It had been
deemed violating the securities governing rules and regulations.
3.Status of the disposition by said competent authority:
KGI Securities has been issued a warning by the FSC in accordance with
Article 66 of the Securities and Exchange Act. One employee will be
suspended from business activities for three months, in accordance with
Article 56 of the Securities and Exchange Act.
4.Intended remedial measures:
The Company will implement business practice improvements and enhance
internal control mechanisms as well as legal compliance management.
5.Effect on the Company’s business operations:
For the duration of three months, KGI Securities is prohibited from applying
for licenses to establish new brokerage branches in Taiwan and overseas or
for the establishment of new business entities and new business operations.
6.Any other matters that need to be specified: None