Conclusion of a contract to manage a discretionary account
11 sales staff of Century Securities including Ageo branch manager, concluded contracts with clients to manage a discretionary account, which enabled them to decide whether to purchase or sell, issues, volume and price without obtaining individual consent of the client. And they executed many transactions based on these contracts.
The conduct above was found to be Century Securities' violation of the Article 42 (1) (v) of the Securities Exchange Law on the basis that management lacked compliance awareness and had failed to improve operations in spite of having received administrative actions on the same violations in 1999.
Display to cause misapprehension concerning important facts
From December 2000 to January 2001, Century Security displayed the secondary distribution price for Equity Exchangeable Bond and sold them to many customers at that price in spite that the value of the bonds declined and it was after the secondary distribution period.
The conduct above was found to have violated a Ministerial Ordinance, Article 42(1)(ix) of the Security and Exchange Law
