Chapter II Finances and Business |
| Article 13 | A securities firm that operates only fund brokerage business shall, within 3 months after the end of each fiscal year, file with the TPEx and publicly announce its annual financial report audited and attested by CPAs. The auditing and attestation of the aforesaid financial report shall be performed by practicing CPAs of a joint accounting firm approved by the FSC in accordance with the Regulations Governing Approval of Certified Public Accountants to Audit and Attest to the Financial Reports of Public Companies.
The financial reports under the preceding paragraph shall be prepared in accordance with applicable laws and regulations. For matters on which applicable laws and regulations are silent, they shall be prepared in accordance with generally accepted accounting principles.
A securities firm that operates only fund brokerage business shall, by the 7th day of each month, file with the TPEx in the prescribed format its monthly accounting summary and income statement for the preceding month.
The periods for which a securities firm keeps its accounting reports, account books, and accounting documents shall comply with the Business Entity Accounting Act, and additionally shall comply with the Required Periods for Preservation of Accounting Statements and Vouchers by Securities Firms Trading on the TPEx adopted by the Taipei Exchange.
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| Article 14 | In the case of a securities firm that operates only fund brokerage business, the total amount of the securities firm's external liabilities may not exceed its net worth.
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| Article 15 | In the case of a securities firm that operates only fund brokerage business, its capital may not be loaned to others nor used for other purposes. The utilization of its capital shall be limited to the following:
- Bank deposits.
- Purchase of government bonds or financial bonds.
- Purchase of treasury bills, negotiable certificates of deposit, or commercial paper.
- Other uses approved by the competent authority or the TPEx.
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| Article 16 | A securities firm that operates only fund brokerage business may not make any equity investment in any other enterprise and may not be a shareholder of unlimited liability in another company or a partner in a partnership enterprise.
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| Article 17 | A securities firm and its responsible persons, managers, and employees shall conduct fund brokerage business in accordance with the duties of care and loyalty of a good fiduciary and the principles of honesty and good faith.
A securities firm and its personnel may not do any of the following when executing fund brokerage business:
- Agree to or provide any specific interest or sharing of losses, or provide any judgment regarding whether a certain fund will rise or fall in price, or provide any investment recommendation, or provide investment consulting service, to induce investors to trade or exchange.
- Misappropriate any fund or money owned by a customer or kept under the custody of the securities firm in the course of business.
- Conceal or omit important financial or business information of a fund that is traded or exchanged on the issuer's trading platform, or of a fund's securities investment trust enterprise or an offshore fund's manager or master agent.
- Forge, conceal, or make any false entry regarding any record of collection, payment, or transfer of money.
- Anything else injurious to the rights and interests of investors or in violation of any relevant law or regulation.
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| Article 18 | Except as otherwise provided by law or regulation, when handling fund brokerage business, the securities firm shall maintain the confidentiality of customers' personal data, transaction and trade data, and other relevant information.
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| Article 19 | A securities firm's collection, processing, use, or provision for use by the competent authority, the TPEx, and the centralized securities depositary enterprise, of the personal data of investors shall comply with the Personal Data Protection Act.
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| Article 20 | A securities firm shall adopt an information security policy in accordance with applicable laws and regulations, its internal control systems, and its business needs, and the policy shall serve as a basis for evaluating risks and establishing various information security management mechanisms, to ensure the effectiveness of security measures for fund brokerage trading.
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| Article 21 | The securities firm shall adopt procedures for managing information security incidents. The procedures shall at least include incident confirmation and troubleshooting mechanisms, incident reporting mechanisms, emergency response mechanisms, occasions for suspension of trading and the handling thereof, compensation measures with respect to the rights and interests of investors, and procedures for handling resumption of trading. The securities firm furthermore shall be diligent about effectively preserving a trail log and evidence and set up business continuity management mechanisms.
When there occurs any incident of irregularity in information services, or any cyber security incident, that materially affects customer rights or interests or normal operation, the securities firm shall make a preliminary notification through the Cyber Security Notification System for Securities and Futures Industry within 30 minutes after the incident takes place, and shall make a formal notification and an incident resolution notification, respectively, at the time the incident has been investigated and understood and after the handling of the incident is finished.
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