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Chapter Content

Title：

Guidelines Governing the Creation of Customer Ledgers of Securities Firms' Settlement Accounts  CH

Amended Date： 2023.12.29 (Articles 3, 3-3, 7, 11, 12, 14, 18, 20 amended,English version coming soon)
Current English version amended on 2022.10.19 
Categories： Market Supervision > Regulation of Securities Firms
Article Content Chapter Content Search Article No. Search Legal Basis Amended Article Legislative History Chinese 
   Chapter 3 Risk Control and Management
Article 20    Where the regulatory capital adequacy ratio of a securities firm that retains funds in the Settlement Account with customers' consent has fallen below 120% for two consecutive months, the TWSE shall request the securities firm to cease to retain customer funds, in which event the securities firm shall transfer the retained funds back to the customers' Securities Book-entry Accounts or Customer Savings Accounts to settle the customer ledgers. Only when it has reported a regulatory capital adequacy ratio of 150% or above for three consecutive months may the securities firm make a report to the TWSE in writing, with a copy furnished to the TPEx, according to Article 6, and then resume the retention.
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Article 21    Where the net value of a securities firm as specified in its latest CPA-audited and -approved financial reports is lower than its paid-in capital, or where the securities firm, its responsible person or an employee is in gross violation of these Guidelines, and no cure is made upon notice given by the TWSE or TPEx, the TWSE or TPEx may request the securities firm to cease to retain customer funds, in which event the securities firm shall transfer the retained funds back to the customers' Securities Book-entry Accounts to settle the customer ledgers. Only when its financial condition is improved or violation cured specifically may the securities firm present a statement to the TWSE or TPEx, then submit the documents listed in Article 6 and make a report to the TWSE in writing, with a copy furnished to the TPEx, and resume the retention.
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