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 TPEx. However, if a research report referred to in the preceding paragraph is obtained from a foreign securities institution, a qualified senior associated person registered with TPEx 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 scope of the research report mentioned in paragraph 1 may stem from TPEx listed securities and registered Emerging Stocks to cover those that are not traded over TPEx, to the extent deemed relevant by industry association. However, the research report must be printed with the words "Not recommendable" in a clear manner for any securities that the firm does not offer consigned trade services; in addition, the securities firm is prohibited from accepting customers' orders for "Not recommendable" securities.