Taiwan Stock Exchange - Rules & Regulations Directory

Article Content

Title:

Taiwan Stock Exchange Corporation Standards Governing Principal Identification and Management of Credit Line Categorization in the Processing by Securities Firms of Account Opening 

Amended Date: 2019.12.27 
Categories: Market Supervision > Regulation of Securities Firms

Article 1
    These Standards are established in accordance with Article 75-1 of the Operating Rules of the Taiwan Stock Exchange Corporation and Article 3 of the Taiwan Stock Exchange Corporation Regulations Governing Brokerage Contracts of Securities Brokers.

Article 2
    A securities firm shall develop the relevant operating procedures of online account opening within its internal control system. When handling such account opening, it shall verify the customer’s identity and documentation, and the following third-party authentication procedure shall first be completed or the customer’s identification shall first be produced for verification:
  1. The identity shall be verifiedby the settlement bank.
  2. The citizen digital certificate, bank account information or wafer debit card shall be sent online.
  3. A photograph from which both the national I.D. card and face are identifiable, together withinformation on the designated debit account of the customer’s ledgers of the securities firm's settlement account, shall be sent online.
  4. The identity shall be verifiedby video imaging.
  5. The identity shall be verifiedby other means.
    If the identity is verified in accordance with subparagraphs 1 to 5 of the preceding paragraph, the securities firm shall send a One Time Password, OTP, by text or make a personal telephone call as a follow-up to reinforce validation.

Article 3
    A securities firm shall determine the type of account and accordingly estimate the principal’s single-day trading limit in accordance with the online account opening identification procedure and agreed strength (appendix).
    The single-day trading limit of the first type of account is NT$ 1 million in principle.
    For the second type of account, an application shall be made with the citizen digital certificate, and the identity shall be verified by video imaging. The principal is not subject to the trading limit in the preceding paragraph upon producing financial proof. The securities firm is to determine in its sole discretion the single-day trading limit pursuant to the Taiwan Securities Association Self-Regulatory Rules on Understanding of Customers and Credit Checking and Credit Line Management in Consignment Trading by Members (Self-Regulatory Rules on Credit Checking and Credit Line Management).
    For the third type of account, it should be agreed that advance payment be collected or funds be earmarked as prepayment in the securities brokerage trading. The single-day trading limitis estimated as that for the second type of account.

Article 4
    Where the settlement bank validates the principal’s identify in either manner below and where the principal texts back the correct confirmation number from the mobile phone number registered with the settlement bank, the single-day trading limit on the first type of account is NT$4.99 million in principle, subject to the actual settlement condition and risk management policy, provided in the event of any subsequent adjustment to the limit, the securities firm may follow the Self-Regulatory Rules on Credit Checking and Credit Line Managementwithout being subject to the limit in paragraph 2 of the preceding article if the principal’s identity is verified in either manner below:
  1. conduct validation using software or physical certification (such as citizen digital certificate IC card) that conforms to the Electronic Signatures Act, and create customer image files (videos)
  2. conduct over-the-counter validation.

Article 5
    These Standards shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
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