Page 101 - 期交所2019年報

Taiwan Futures Exchange Corporation Statement on INTERNAL CONTROL March 19, 2020 Based on the self-assessment of Company's internal control system for year 2019, we declare that: 1. The establishment, implementation and maintenance of an internal control system are the responsibility of its Board of Directors and management. The Company has established such a system, designed to provide reasonable assurance with respect to the effectiveness and efficiency of business operations (including profitability, performance and safeguarding of assets), reporting that encompass reliability, timeliness, transparency, or other terms as set forth by regulators, recognized standard setters, or the Company's policies and their compliance with relevant rules and regulations. 2. An internal control system, no matter how well designed, has inherent limitations and therefore can provide only reasonable assurance with respect to the accomplishment of the above goals. Furthermore, because of changing conditions and circumstances, the effectiveness of an internal control system may vary over time. Notwithstanding, the internal control system of the Company contains self-oversight mechanisms, and actions are taken to correct deficiencies as they are identified. 3. The Company examined the design and effective implementation of its internal control system according to the criteria prescribed in "Guidelines for Establishment of Internal Control Systems by Securities and Futures Related Organizations" (called the “Guidelines” below) promulgated by the Securities and Futures Bureau, Financial Supervisory Commission. The "Guidelines" divide internal control into five constituents in line with the process of management control: (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring activities. Each constituent contains several criteria. Please refer to the "Guidelines" for details. 4. The Company has evaluated the design and effectiveness implementation of its internal control system in accordance with the above criteria. 5. Based on the results of assessment, the Company believes within the stated time frame, that the design and implementation of its internal control system, consisting of the effectiveness and efficiency of business operations, reporting that encompass reliability, timeliness, transparency, or other terms as set forth by regulators, recognized standard setters, or the Company's policies and the compliance of relevant rules and regulations, are effective and reasonably assure the achievement of the aforementioned goals. 6. Any false representation or concealment in this Statement shall be subjected to legal consequences as stipulated in Articles 115 of the Futures Trading Act. 7. This Statement has been unanimously approved by the Board of Directors at the meeting held on March 19, 2020. Taiwan Futures Exchange Corporation Mr. Bing-Jing Huang Mr. Bing-Jing Huang Acting Chairman Chief Executive Officer 97