Section 1 Finances and Operations |
| Article 21 | When a futures commission merchant receives permission from the competent authority to operate securities introducing broker business, it shall complete amendment of its business registration, then open a special account with a financial institution designated by the competent authority and deposit an operating bond. An operating bond shall also be deposited when a branch unit receives permission to operate securities introducing broker business.
The operating bond required under the preceding paragraph is NT$10 million for the securities introducing broker and NT$5 million for each branch unit.
The financial institution in paragraph one shall be a bank that has been approved to operate custody business, and meets the conditions prescribed by the competent authority.
The operating bonds of paragraph one shall be deposited in the form of cash, government bonds, or financial bonds.
Operating bonds deposited by a futures commission merchant in connection with its operation of securities introducing broker business may not be separately deposited in different institutions, reported lost, or rescinded. The deposited operating bond and associated certificate of depository may not be provided as a security, and unless approved by the competent authority, may not be withdrawn or replaced.
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| Article 22 | By the tenth day of each month, a securities introducing broker shall submit to the TWSE or GTSM a statement of the business volume in the preceding month.
The forms for the monthly statements referred to in the preceding paragraph, and any amendments thereto, shall be respectively prescribed by the TWSE and the GTSM and filed with the competent authority for recordation.
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| Article 23 | A securities introducing broker shall enter into a mandate contract with the mandating securities firm, which shall contain the following particulars:
- The names of the parties to the contract.
- That either party shall notify the other upon receiving a securities investor's complaint.
- Provisions for commissions and other relevant fees.
- The scope of agency business of the securities introducing broker and the procedures for its execution.
- The scope of information and services to be provided by the parties to the contract.
- That neither party shall refuse a request of the other party for provision of necessary business and financial information.
- That neither party to the contract shall improperly use information obtained from the other party.
- That when the securities introducing broker is unable to perform the business, it shall be directly handled by the mandating securities firm.
- A method for handling damages attributable to either party to the contract.
- A method for handling damages not attributable to either party to the contract.
- That the mandating securities firm shall bear joint and several liability if the securities introducing broker is liable for damages caused to a securities investor or any third person resulting from deliberate intent or negligence in performing any type of business under the subparagraphs of Article 3, paragraph 1.
- The settlement of trading disputes.
- The alteration of contract provisions.
- The rescission or termination of the contract.
- The effective date of the contract.
- Other necessary statements of the parties' rights and obligations.
- Other matters required by the competent authority.
A mandating securities firm may not enter into an agreement in advance with a securities introducing broker to waive the liability referred to in subparagraph 11 of the preceding paragraph. Any change, rescission, or termination of the mandate contract of paragraph 1 above shall be reported to the competent authority in advance for recordation by.
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| Article 24 | A mandating securities firm may not, by a mandate contract or in any other manner, agree with a securities introducing broker to allow the securities introducing broker to execute any types of business on its behalf other than those listed under Article 3.
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| Article 25 | To protect the rights and interests of the securities investors, a securities introducing broker shall promptly deliver the securities trading orders of securities investors to the mandating securities firm for execution.
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| Article 26 | In the operation of securities introducing broker business by a futures commission merchant, the business shall be operated by a dedicated department and a dedicated person shall be assigned responsibility for its management, and the business shall be executed by registered, qualified associated persons for securities business.
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| Article 27 | A securities introducing broker shall keep at its business premises all the business-related certificates, vouchers, books of account, statements, records, contracts, and relevant documents for inspection at any time by the competent authority, the TWSE, the GTSM, or other institutions designated by the competent authority.
The retention period for the certificates, vouchers, books of account, statements, records, contracts, and relevant documents referred to in the preceding paragraph shall be as provided in the Business Accounting Act and other relevant laws and regulations.
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| Article 28 | The competent authority, the TWSE, the GTSM, or an institution designated by the competent authority may examine the business or finances of the securities introducing broker and other necessary matters.
A securities introducing broker shall provide explanations and relevant documents in connection with the examinations referred to in the preceding paragraph.
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