Taishin Securities Experiences 3 Incidents in Half a Month; FSC: Maximum Fine of NT$6 Million Possible
Following its merger with Yuanta Securities, Taishin Securities has reported three incidents within half a month, including system issues and incorrect transaction declarations totaling NT$2.011 billion. The Financial Supervisory Commission stated it would consider imposing a fine of up to NT$6 million based on the Taiwan Stock Exchange's investigation report.
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- 📰 Published: April 21, 2026 at 20:27
- 🔍 Collected: April 21, 2026 at 20:32 (4 min after Published)
- 🤖 AI Analyzed: April 22, 2026 at 01:02 (4h 30m after Collected)
Central News Agency (Taipei, April 21st) – After the merger of Taishin Securities and Yuanta Securities on April 6th, Taishin Securities has experienced three incidents within half a month, with reported erroneous transaction amounts reaching NT$2.011 billion. The Financial Supervisory Commission (FSC) stated today that after the Taiwan Stock Exchange (TWSE) completes its on-site inspection report, it will impose penalties ranging from NT$300,000 to NT$6 million according to the Securities and Exchange Act, depending on the severity of the deficiencies. It will also request the company to propose short- to long-term improvement measures to ensure no recurrence.
After merging with Yuanta Securities on April 6th, Taishin Securities has frequently made errors, including a database performance overload on April 7th that slowed system response times. On April 14th, a system program anomaly caused a halt in transaction confirmation, leading many investors to repeatedly place orders and resulting in erroneous transactions. On April 20th, its "PhoneEZ" APP reported another anomaly. Taishin Securities' total number of reported erroneous transactions was approximately 9321, with a declared erroneous transaction amount of NT$2.011 billion, and actual erroneous transaction losses of approximately NT$43 million.
Huang Chung-hao, Deputy Director-General of the Securities and Futures Bureau of the FSC, explained at a press conference that due to the erroneous transactions on April 14th, Taishin Securities was supposed to report by 10 AM on April 16th under the "T+2" rule. However, the company delayed reporting until 8 PM because it had not yet collected all the data. Since the erroneous transactions were not reported within the deadline, the TWSE could impose a penalty of NT$100,000. However, given Taishin Securities also had other delayed credit data reports, the TWSE might combine multiple penalties later.
Huang Chung-hao pointed out that on April 20th, Taishin Securities' "PhoneEZ" APP experienced an anomaly due to insufficient host memory, causing the interface to show a spinning circle, affecting client order placements. Taishin Securities notified clients that they could switch to other platforms for operations, and further investigations into the cause would follow.
Regarding the FSC's attitude towards this case, Huang Chung-hao stated that after the TWSE completes its on-site inspection report, the FSC will determine whether internal control regulations were violated based on Article 178-1 of the Securities and Exchange Act, with fines ranging from NT$300,000 to NT$6 million. The primary goal is to have the company clarify the cause of the incidents and propose short- to long-term improvement measures to ensure no recurrence.
Concerns have been raised that the NT$2 billion erroneous transaction amount from Taishin Securities might only result in an initial fine of NT$100,000, which seems disproportionate. Huang Chung-hao clarified that NT$100,000 only applies to the delayed reporting of erroneous transactions. He emphasized that besides fines, other tools are available, including business-related actions and personnel disciplinary measures, which will be decided based on the nature of the deficiencies.
The Securities and Futures Bureau also explained the concept of offsetting erroneous transactions. For example, if an investor first places an order for one share at NT$100, and then another for a second share at NT$110, Taishin Securities' case prioritizes the investor's claim. If the investor insists on the first order, the NT$110 order becomes an erroneous transaction, meaning the brokerage effectively bought one share at NT$110. The company then needs to sell it in a reverse offset; if sold at NT$115, it makes NT$5, but if sold at NT$105, it loses NT$5. Therefore, the erroneous transaction amount does not equal the actual loss, as it depends on the profit or loss after handling. (Edited by Lin Shu-yuan) 1150421
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After merging with Yuanta Securities on April 6th, Taishin Securities has frequently made errors, including a database performance overload on April 7th that slowed system response times. On April 14th, a system program anomaly caused a halt in transaction confirmation, leading many investors to repeatedly place orders and resulting in erroneous transactions. On April 20th, its "PhoneEZ" APP reported another anomaly. Taishin Securities' total number of reported erroneous transactions was approximately 9321, with a declared erroneous transaction amount of NT$2.011 billion, and actual erroneous transaction losses of approximately NT$43 million.
Huang Chung-hao, Deputy Director-General of the Securities and Futures Bureau of the FSC, explained at a press conference that due to the erroneous transactions on April 14th, Taishin Securities was supposed to report by 10 AM on April 16th under the "T+2" rule. However, the company delayed reporting until 8 PM because it had not yet collected all the data. Since the erroneous transactions were not reported within the deadline, the TWSE could impose a penalty of NT$100,000. However, given Taishin Securities also had other delayed credit data reports, the TWSE might combine multiple penalties later.
Huang Chung-hao pointed out that on April 20th, Taishin Securities' "PhoneEZ" APP experienced an anomaly due to insufficient host memory, causing the interface to show a spinning circle, affecting client order placements. Taishin Securities notified clients that they could switch to other platforms for operations, and further investigations into the cause would follow.
Regarding the FSC's attitude towards this case, Huang Chung-hao stated that after the TWSE completes its on-site inspection report, the FSC will determine whether internal control regulations were violated based on Article 178-1 of the Securities and Exchange Act, with fines ranging from NT$300,000 to NT$6 million. The primary goal is to have the company clarify the cause of the incidents and propose short- to long-term improvement measures to ensure no recurrence.
Concerns have been raised that the NT$2 billion erroneous transaction amount from Taishin Securities might only result in an initial fine of NT$100,000, which seems disproportionate. Huang Chung-hao clarified that NT$100,000 only applies to the delayed reporting of erroneous transactions. He emphasized that besides fines, other tools are available, including business-related actions and personnel disciplinary measures, which will be decided based on the nature of the deficiencies.
The Securities and Futures Bureau also explained the concept of offsetting erroneous transactions. For example, if an investor first places an order for one share at NT$100, and then another for a second share at NT$110, Taishin Securities' case prioritizes the investor's claim. If the investor insists on the first order, the NT$110 order becomes an erroneous transaction, meaning the brokerage effectively bought one share at NT$110. The company then needs to sell it in a reverse offset; if sold at NT$115, it makes NT$5, but if sold at NT$105, it loses NT$5. Therefore, the erroneous transaction amount does not equal the actual loss, as it depends on the profit or loss after handling. (Edited by Lin Shu-yuan) 1150421
Choose to stand with the facts; every sponsorship you provide helps safeguard press freedom.
Download the Central News Agency "First-Hand News" APP to stay updated with the latest news.
Text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.