Chapter II Business Permission |
| Article 12 | A futures commission merchant applying to operate securities introducing broker business shall meet the following requirements:
- It has received no sanction during the last three months under Article 66, subparagraph 1 of the SEA, Article 103, subparagraph 1 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
- It has received no sanction during the last half year under Article 66, subparagraph 2 of the SEA, Article 103, subparagraph 2 or 3 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act.
- It has received no sanction during the last half year under Article 66, subparagraph 3 of the SEA, Article 103, subparagraph 4 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 3 of the Futures Trading Act.
- It has received no sanction during the last two years under Article 66, subparagraph 4 of the SEA, Article 103, subparagraph 5 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 4 of the Futures Trading Act.
- It has not during the last year had its trading privileges suspended or restricted by a securities exchange, over-the-counter securities market, futures exchange, or futures clearing house pursuant to their respective bylaws.
- Other requirements prescribed by the competent authority.
When a futures commission merchant has been sanctioned under any of subparagraphs 1 to 4 of the preceding paragraph and ordered by the competent authority to take corrective action, but at the time of its application to operate securities introducing broker business has nevertheless failed to effect concrete improvement, the competent authority may reject its application.
|
Info |
| Article 13 | A futures commission merchant applying to operate securities introducing broker business shall apply to the competent authority for permission by filling out and submitting an application form together with the following documents:
- A business plan specifying the principles of the securities introducing broker business, internal organization and segregation of duties, personnel recruitment and training plans, and the condition of the site and facilities.
- Minutes of the relevant board of directors meeting showing the resolution to operate securities introducing broker business.
- The mandate contract entered into with the mandating securities firm.
- Its financial report for the latest fiscal period, audited and attested (or reviewed) by a certified public accountant.
- Documentation of compliance with paragraph 1, subparagraph 5 of the preceding article.
- A case checklist.
- A written declaration that the application form and attached documents contain no misrepresentation or nondisclosure.
|
Info |
| Article 14 | A futures commission merchant applying to operate securities introducing broker business shall duly amend its articles of incorporation and complete an amended company registration for the operation of securities introducing broker business within six months from the date the competent authority grants permission, and shall apply to the competent authority for a permission license by filling out and submitting an application form together with the following documents:
- The applicant's articles of incorporation and documentation showing its amended company registration.
- A photocopy of the futures commission merchant's permission license.
- The internal control system for the operation of securities introducing broker business.
- A list of managerial officers and associated persons who will conduct the introducing broker business and documentation of their qualifications.
- A written declaration that none of the circumstance under Article 53 of the SEA applies with respect to any managerial officer who will conduct the introducing broker business.
- Documentation of submission of the operating bond in accordance with the requirements of Article 21.
- Documentation showing that the applicant has the data transmission facilities necessary to operate securities introducing broker business.
- Documentation of the mandating securities firm's agreement to deposit the additional contributions to the clearing and settlement fund pursuant to Article 8, paragraph 2.
- A letter of consent stating that the applicant agrees to allow audits of its finances, operations, and other necessary matters by the competent authority, the TWSE, the GTSM, or institutions designated by the competent authority, and to provide explanations and documents requested in connection with an audit by any of the aforementioned organizations.
- Documentation showing compliance with Article 12, paragraph 1, subparagraph 5.
- Documentation showing compliance with Article 10.
- A case checklist.
- A written declaration that the application form and attached documents contain no misrepresentation or nondisclosure.
If a futures commission merchant fails to apply for the above permission license within the period prescribed in the preceding paragraph, its permission to operate securities introducing broker business shall be revoked, provided that with legitimate reason it may file an application with the competent authority for an extension before expiration of the period. Such extension may not exceed six months and will be granted only once.
|
Info |
| Article 15 | A futures commission merchant that applies for permission to operate securities introducing broker business may simultaneously apply for operation of securities introducing broker business by a branch unit.
A futures commission merchant that has already obtained permission to operate securities introducing broker business and applies for permission for a branch unit to operate securities introducing broker business shall comply with Article 12. When a futures commission merchant fails to meet a condition under Article 12, paragraph 1, subparagraphs 1 to 5, but concrete improvement has been made and has been approved by the competent authority, the futures commission merchant may be exempted from the restrictions of those subparagraphs.
|
Info |
| Article 16 | A futures commission merchant applying for permission for operation of securities introducing broker business by a branch unit shall apply to the competent authority for permission by filling out and submitting an application form together with the following documents:
- A business plan specifying the principles of the securities introducing broker business, internal organization and segregation of duties, personnel recruitment and training plans, and the condition of the site and facilities.
- The minutes of the relevant board of directors meetings showing the resolution to have a branch unit operate securities introducing broker business.
- The internal control system for the operation of securities introducing broker business by the branch unit, provided that the internal control system need not be submitted if it is identical to that submitted during the previous application for permission for operation of securities introducing broker business by a branch unit.
- The financial report for the latest fiscal period, audited and attested (or reviewed) by a certified public accountant.
- Documentation of compliance with Article 12, paragraph 1, subparagraph 5.
- A case checklist.
- A written declaration that the application form and attached documents contain no misrepresentation or nondisclosure.
|
Info |
| Article 17 | A futures commission merchant applying for a branch unit to operate securities introducing broker business shall apply to the competent authority for a permission license within six months from the day the competent authority grants permission by filling out and submitting an application form together with the following documents:
- Photocopies of the permission license of the futures commission merchant's branch unit.
- A list of managerial officers and associated persons who will conduct the introducing broker business and documentation of their qualifications.
- A written declaration that none of the circumstances under Article 53 of the SEA applies with respect to any managerial officer who will conduct the introducing broker business.
- Documentation showing deposit of the operating bond in accordance with of Article 21.
- Documentation showing that the branch unit has the data transmission facilities necessary to operate securities introducing broker business.
- Documentation of the mandating securities firm's agreement to deposit the additional contribution to the clearing and settlement fund pursuant to Article 8, paragraph 2.
- A letter of consent stating that the branch unit agrees to allow audits of its finances, operations, and other necessary matters by the competent authority, the TWSE, the GTSM, or institutions designated by the competent authority, and to provide explanations and documents requested in connection with an audit by any of the aforementioned organizations.
- Documentation of compliance with Article 12, paragraph 1, subparagraph 5 of these Regulations.
- Documentation of compliance with Article 10 of these Regulations.
- A case checklist.
- A written declaration that the application form and attached documents contain no misrepresentation or nondisclosure.
If a futures commission merchant fails to apply for the permission license within the period prescribed in the preceding paragraph, permission for operation of securities introducing broker business by its branch unit shall be revoked, provided that with legitimate reason, it may file an application with the competent authority for an extension before expiration of the period. Such extension may not exceed six months and will be granted only once.
|
Info |
| Article 18 | Under any of the following circumstances, the competent authority may deny approval to an application by a futures commission merchant to operate securities introducing broker business:
- The content or information in the application documents is found to contain a misrepresentation.
- The business plan or the internal control system is not concrete enough or cannot be effectively executed.
- Business operations have not been effectively carried out in accordance with internal control systems.
- Any of the circumstances of Article 53 of the SEA applies with respect to a director, supervisor, or a managerial officer that conducts the securities introducing broker business.
- When otherwise deemed necessary to protect the public interest.
|
|
| Article 19 | When application documents submitted pursuant to these Regulations are incomplete or the required information is not fully provided and the applicant fails to meet a deadline for supplementation set by the competent authority, the application will be rejected.
|
|
| Article 20 | A securities introducing broker shall display its permission license in a conspicuous place on its business premises.
|
|