| Article 18 |
Responsible persons and associated persons of a securities firm shall conduct business in accordance with the principles of honesty and good faith.<br/>Except where otherwise provided by law or regulation, responsible persons and associated persons of a securities firm may not engage in the following conduct:<br/>1. Engaging in the trading of TWSE listed or TPEx listed stocks with information learned in the course of their duties for the purpose of obtaining speculative profit.<br/>2. Disclosing information regarding a customer order or other secrets learned in the course of their duties, other than in response to inquiries made in accordance with laws or regulations.<br/>3. Accepting a customer's trading order with discretionary authority over the type, quantity, price, or purchase or sale of the securities.<br/>4. Securities trading with a guarantee of profit to the customer or involving profit-sharing with the customer.<br/>5. Securities trading under an agreement with the customer to jointly assume the losses or profits of the transaction.<br/>6. Accepting an order from a customer to buy or sell securities and concurrently buying or selling the same securities for his or her own account in an opposite trade.<br/>7. Using a customer's name or account to subscribe or trade securities.<br/>8. Subscribing or trading securities for a customer in the name of another person or a relative.<br/>9. Borrowing or lending of money or securities to or from a customer, or acting as an intermediary for the borrowing or lending of money or securities to or from a customer.<br/>10. Engaging in concealment, fraud, or other conduct sufficient to mislead others when conducting underwriting, proprietary trading, or brokerage trading of securities.<br/>11. Misappropriating, or keeping custody on behalf of customers, of securities, funds, seals, or passbooks.<br/>12. Trading securities for a customer that has not entered into a brokerage contract.<br/>13. Trading securities other than in accordance with the instructions and conditions of the order placed by the customer.<br/>14. Providing judgments to customers or unspecified persons that the price of certain securities will rise or fall in order to solicit trading.<br/>15. Recommending trades in specific stocks to unspecified persons, except as necessary for purposes of securities underwriting.<br/>16. Accepting customer settlement by means of offsetting a purchase or sale of securities with a sale or purchase of securities of the same type through the same or a different account. However, this restriction shall not apply to settlement by mutually offsetting margin purchases and short sales in margin trading, nor shall it apply to accepting customer settlement by means of mutually offsetting an equal quantity of cash purchases and spot sales of the same security that have been executed through the same account on the same business day, when done in accordance with laws and regulations.<br/>17. Opening an account, or subscribing, trading, or settling securities as agent on behalf of another person, provided that this restriction does not apply if the responsible person or associated person is the statutory representative of the principal.<br/>18. Processing the opening of an account, or the subscription, trading, or settlement of securities, for any director, supervisor, or employee of the securities firm who is acting as an agent on behalf of another person.<br/>19. Processing the opening of an account for any person other than the principal for whom the account is being opened. However, this rule does not apply if the FSC has provided otherwise.<br/>20. Processing an application for subscription, trading, or settlement of securities from any person who is neither the customer nor an agent with a power of attorney from the customer. However, this restriction does not apply when the securities firm, pursuant to a three-party agreement signed jointly between it and the customer and the securities investment consulting enterprise, accepts automatic rebalancing trades automatically executed for the customer by the securities investment consulting enterprise through a computer system.<br/>21. Accepting a trading order despite being aware that the customer is using undisclosed information of a public company that will have a material impact on the stock price of the company or being aware that the customer intends to manipulate the market.<br/>22. Any agreement between any person conducting securities underwriting business and the issuing company or its relevant personnel for purposes of obtaining improper profit.<br/>23. Soliciting, acting as an intermediary for, or promoting any unapproved securities or derivative products thereof.<br/>24. Other conduct in violation of securities laws or regulations or conduct prohibited by the rules prescribed by the FSC.<br/>Persons referred to in the preceding paragraph, when conducting business, also may not engage in any conduct prohibited by laws and regulations governing securities firms.<br/>The provisions of the two preceding paragraphs shall apply mutatis mutandis to other employees of a securities firm. |
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