Chapter II Separate Management of Client Rights and Interests |
| Article 13 | The securities firm shall review the book-entry account opened by the client for trading of securities on the centralized securities exchange market or GTSM before agreeing to sign the Agreement for Money Market Fund Investment Services of Securities Firms with the client and then providing the Services.
The template of the Agreement for Money Market Fund Investment Services of Securities Firms in the preceding paragraph shall be established by the CSA and submitted to the Competent Authority for acknowledgement, and shall state the following:
- types of funds for utilization requested by the client;
- the threshold amount for utilization established by the securities firm;
- types of underlying investments;
- terms and conditions of the underlying investments;
- the securities firm shall perform the fund transfers as agreed without making any investment decisions; any and all risks and profits arising from utilization of funds shall be solely borne and enjoyed by the client; and the securities firm may not agree with the client on the sharing of investment profits and losses;
- the agreed order of utilization of underlying investments in the event the client has funding needs;
- the application procedures for the client's recovery of funds;
- how the client may request information about its funds and underlying investments;
- the securities firm shall keep records of the receipt and payment and associated utilization of funds for the Services;
- management fee rate charged by the securities firm;
- the effective date and term of existence of the agreement, and how the agreement may be amended and terminated;
- the client agrees that the securities firm may disclose information about the investment in the money market requested by the client to the TWSE, GTSM, and institutions appointed by the Competent Authority for collection, processing and use as required by law; and
- dispute resolution.
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| Article 14 | In the event of a change to the name, R.O.C. I.D. Number, Uniform Business Number, Profit-Seeking Enterprise Registration Number, address or mailing information of the client or its agent or representative as stated by the client in the Agremeent for Money Market Fund Investment Services of Securities Firms, the client shall notify the securities firm of the change in an appropriate manner.
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| Article 15 | When providing the Services, the securities firm shall create separate accounts for individual clients under the Securities Firm Money Market Fund Investment Account" and document the following for each of these separate accounts on a daily basis:
- receipt of the client's funding sources;
- transfer of the amount of funds not meeting the threshold amount for utilization.
- transactions and transfers of money of underlying investments;
- transactions and transfers of money for funding settlement money to the client;
- transaction and transfers of money for the client's early redemption of funds; and
- the client's early termination of the agreement and transfers of money.
The securities firm shall keep records of the receipt and payment and associated utilization of funds described in the preceding paragraph and the evidence of receipt and payment, and create monthly reconciliation statements covering the daily account details to be sent to the client. Also, the transaction details of investments made and balance information described in the reconciliation statement shall include the titles, total number of investment units, and net worths of funds.
With regard to the preceding paragraph, the securities firm shall include in the reconciliation statement any transactions with a company in which the securities firm has a stake.
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| Article 16 | The securities firm shall keep complete and thorough records and prepare the following statements on a daily basis in respect of the Services:
- a daily statement reflecting the receipt and payment of funds in the Securities Firm Money Market Fund Investment Account;
- a daily statement reflecting the utilization of funds and transfers of money in regard to the Securities Firm Money Market Fund Investment Account,; and
- a detailed statement for individual clients showing the allocation and utilization of funds in regard to the Securities Firm Money Market Fund Investment Account.
Upon completion of the production of the statements in the preceding paragraph, the statements may be stored on electronic media; provided, however, that the storage media shall disable the revision and deletion functions and is able to convert electronic files into written form at any time.
The securities firm shall transmit the daily statements described in paragraph 1, subparagraphs 1 and 2 above for the current month, at the end of a month to the TWSE.
Statements, evidence and documentation relating to the Services shall be kept for at least five years, or a longer term as required under other applicable laws; provided, however, that in the event of a dispute, these documents shall be kept for as long as the dispute remains unresolved.
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| Article 17 | Where the client needs the settlement money payable, the securities firm shall directly dispose of the relevant underlying investments to satisfy the client's needs according to the order of utilization agreed with the client.
When transferring funds for payment of the settlement money in the preceding paragraph, the securities firm shall transfer the proceeds from the disposition of the underlying investment to the Securities Firm Money Market Fund Investment Account, before the funds are further transferred to the book-entry account opened by the client for trading of securities on the centralized securities exchange market or GTSM, or the relevant settlement account maintained by the securities firm, to complete the settlement for the client.
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| Article 18 | If the client needs to recover its funds, it shall complete an "Application for Recovery of Funds Invested in the Money Market" before its request will take effect.
Upon receipt of the above application, the securities firm shall dispose of the applicable underlying investment based on the order of utilization agreed with the client for up to the amount to be recovered by the client, to complete the procedure for the client's application for recovery of funds.
Transfers of funds by the securities firm to satisfy the client's needs as in the preceding paragraph shall be made to the Securities Firm Money Market Fund Investment Account within the time limit as agreed with the client, before the funds are further transferred to the book-entry account opened by the client for trading of securities on the centralized securities exchange market or GTSM.
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| Article 19 | If the client needs to terminate the Services, it shall complete an "Application for Termination of Agreement," to which the provisions under Article 6, paragraph 3 shall apply mutatis mutandis.
In the event of cancellation of the client's consigned trading account, the equity contract shall terminate ipso facto upon expiry, rescission of the contract for, or redemption of the underlying investment.
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