In recommending trade in securities to customers, a securities firm may issue under its own name research reports that it has prepared itself or outsourced, and shall disclose any relevant conflicts of interest of the securities firm or the personnel who wrote or reviewed the research report.
A research report referred to in the previous paragraph shall be written by a qualified securities investment analyst of a securities investment consulting enterprise or by a qualified senior associated person registered with this Corporation; provided, if a research report referred to in the preceding paragraph is obtained from a foreign securities institution, a qualified senior associated person registered with this Corporation may be substituted as a reviewer.
A research report obtained from a securities firm's overseas parent company (or headquarters) or an affiliated enterprise of the overseas parent company (or headquarters) shall not be subject to the restrictions of the preceding paragraph.
The securities firm's performance evaluation method for the researchers may not affect the independence of the researchers.
The scope of the research reports under paragraph 1 may, based on the relevance of the industry to which the securities listed on the TWSE market belong, extend to securities listed on markets other than the TWSE market, provided that if the securities firm does not operate brokerage trading business in those markets, it shall mark in distinctive typeface in such research reports "without recommendation" and may not accept orders from customers to trade in such securities that are "without recommendation."