Chapter 2 Separate Management of Customer Rights and Interests |
| Article 12 | A template of the contract shall be created by the TSA, presented to the competent authority for reference, and state the following:
- Scope of retention of the customer funds
- Scope of payment service provided to the customer and the order in which it is rendered
- Terms of settlement and payment of interest
- Procedures for the customer's reclaim of its funds
- Ways for the customer to inquire about its funds
- The securities firm shall retain receipt and payment records regarding funds in the customer's ledger
- Schedule of the securities firm's management fees
- Manner of handling matters pertaining to the profit and loss from the sale and purchase of R.O.C. government bonds and treasury bills
- Effective date of the contract and ways to handle amendments and termination of the contract
- Pursuant to the Personal Information Protection Act and relevant laws and regulations, the customer agrees the securities firm may furnish information pertaining to the customer's ledger to the TWSE, TPEx, TDCC and other institutions designated by the competent authority
- Dispute resolution
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| Article 13 | Any change to the name, I.D. number or uniform business number, business license number, address or mailing address of the customer itself or its agent or representative as stated in the contract for the retention by the securities firm of the customer's funds in the Settlement Account shall be notified by the customer to the securities firm in an appropriate manner.
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| Article 14 | A securities firm that retains funds in the Settlement Account with customers' consent shall set up a separate account ledger for each customer and record therein the following for each item on a daily basis:
- Transfers of sources of the customer's funds to such account
- Transfers of interest and profit and loss incurred from funds in the customer's ledger
- Transfers for the customer of monies payable by the customer
- Transfers of funds reclaimed by the customer
- Transfers of funds in the event of premature termination of the contract by the securities firm or customer
The securities firm shall retain records of receipts and payments of the above-mentioned funds and the relevant supporting documents, and prepare and send to the customer on a monthly basis a statement for reconciliation according to the detailed daily account entries.
The securities firm shall disclose the utilization of funds in the Settlement Account to the customer on a monthly basis and fully disclose in the financial reports the funds in the Settlement Account and their utilization (including information such as the overall balance of the securities firm's Settlement Account, objects invested in with the funds and amounts utilized for such investments, market values of the objects, and investment profits and losses, etc.).
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| Article 15 | A securities firm that retains funds in the Settlement Account with customers' consent shall keep detailed records and prepare the following report and statement on a daily basis:
- Daily report on the receipts and payments of funds in the customer's ledger in the securities firm's Settlement Account
- Statement of receipts and payments of funds in individual customer ledgers in the securities firm's Settlement Account
- Daily report on the sales and purchases of R.O.C. government bonds and treasury bills, or transfer of funds to other banks in a form of time deposits from the securities firm's Settlement Account.
The above report and statement may be stored in electronic media after completion. Such media must be equipped with functions disallowing alteration and cancellation and enabling conversion into written form at any time.
The securities firm shall send the daily report mentioned in the first paragraph of the previous day to the TWSE before 10 A.M. each day. The TWSE will then forward the data on the daily reports in subparagraphs 1 and 2 of the first paragraph to the TDCC to be made available to customers for consultation.
Reports and statements, supporting documents and other documents relating to the creation of customer ledgers in a securities firm's Settlement Account shall be retained for at least five years or for any longer period of time prescribed by other applicable laws and regulations, provided in the event of a dispute, they shall be retained until the dispute is eliminated.
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| Article 16 | Where the same customer has opened a trading account with the head office or different branches of a securities firm, the securities firm may create a separate ledger for such customer in the name of the securities firm's head office, by the category of financial institution.
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| Article 17 | A securities firm shall pay any monies payable by a customer with the funds in the Settlement Account first. Where the securities firm has created a separate ledger for such customer under each customer funds retention account opened by the customer with different financial institutions, the securities firm shall pay the above-mentioned monies with the amount specified in each ledger, then with funds in the savings account opened by the customer with a financial institution designated by the securities firm in the event of a deficiency; if said monies are still not covered in full by such funds in the savings account, the securities firm shall immediately notify the customer.
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| Article 18 | A securities firm shall retain the relevant record when a customer applies in the agreed manner for reclaim of its funds retained.
When the securities firm is to transfer the customer's funds above, it shall transfer themwithin the agreed period to the customer's Securities Book-entry Account or Customer Savings Account only.
In the event of a change to the Customer Savings Account in the preceding paragraph, the customer shall make an application for change by himself.
A securities firm shall, on a daily basis, notify customers that applyon the day for reclaim of funds totaling NTD1 million or above in a lump sum or cumulatively, by text, or by telephone with the audio recording retained; a text notice shall state that an immediate reply is requested in the event of queries.
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| Article 19 | Article 7, Paragraph 1 is applicable mutatis mutandis where a customer requests a securities firm in the agreed manner to terminate the retention of funds or whether the contract for the retention of customer funds by a securities firm in the Settlement Account is terminated ipso facto by the cancellation of a consignment trading account.
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