| Title： |
Regulations Governing Securities Dealers Associations(1992.08.11) |
| Date： |
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Article 1
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These Regulations are prescribed pursuant to Article 90 of the Securities and Exchange Law (hereinafter "this Law")
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Article 2
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The articles of association of a securities dealers associations shall, in addition to conforming with the requirements of Article 11 of the Commercial Organizations Law, contain the following particulars:
1. matters regarding the maintenance of fairness in securities transactions and protection of investors.
2. matters regarding the prevention of fraud in securities transactions, manipulation of the market, obtaining improper handling fees and charges, and obtaining other improper benefits.
3. matters regarding providing assistance in the implementation of, and rendering research and suggestions in governmental economic policies and the Securities and Exchange Law.
4. matters regarding the promotion of member self-regulation, mutual improvement of business operations, and contact and coordination in business operations.
5. matters regarding resolution of business dispute between members.
6. matters regarding the imposition of sanctions on members which have violated this Law, other relevant laws and regulations, or the articles of incorporation or regulations of securities dealers associations or securities exchanges.
7. other matters which are required to be prescribed by the regulations of the Securities and Exchange Commission of the Ministry of Finance (hereinafter "this Commission").
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Article 3
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A securities dealers association shall formulate its annual business plan and budget and submit such to this Commission for approval before forming its annual budget; the same procedures shall apply with amendments thereto; within 15 days of the end of each quarterly period, it shall prepare statements describing its status of implementation with regards to the annual business plan and budget as of the end that quarter and file such with this Commission for its record.
A securities dealers association shall implement the annual business plan and budget approved by this Commission.
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Article 4
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A securities dealers association shall formulate self-disciplinary regulations regarding the underwriting, dealing, and brokerage of securities by its members and file such with this Commission for its review and record, and it shall further implement such regulations.
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Article 5
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A securities dealers association shall formulate management regulations regarding the production and transmission of advertisements by members and file such with this Commission for its record, and it shall further implement such regulations.
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Article 6
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A securities dealers association shall carefully supervise the financial conditions of its members; where it is discovered that violations of laws have occurred, or there are other inappropriate matters, it shall take immediate action to properly treat such matters and report to this Commission.
The supervisory regulations referred to in the preceding paragraph shall be formulated by the securities dealers association and filed with this Commission for its review and record.
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Article 7
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While conducting the supervision referred to in the preceding Article, if the securities dealers association discovers that the member has operated poorly, losses occur such that good credit is not maintained, or a sudden event has occurred, it shall investigate the matter as a special matter and render assistance; the rules regarding handling of such matters shall be formulated by the securities dealers association and filed with this Commission for its review and record.
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Article 8
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A securities dealers association shall display the financial and business information of public companies and its members at a designated location for review by the public.
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Article 9
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In case any changes occur to the articles of association, bylaws or the business of a securities dealers association, the changes shall be immediately reported to this Commission for its review and record.
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Article 10
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Within 2 months of the end of each fiscal year, the securities dealers association shall file with this Commission the annual business report, the income/disbursement statement, cash disbursement statement, balance sheet, list of assets, and fund receipt/disbursement statement audited by an auditor, approved by the directors and recognized by the supervisors.
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Article 11
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In case any of the following events occurs, a securities dealers association shall, in addition to immediately handling the situation, report to this Commission for its record:
1. the securities dealers association, or the responsible person or associated person of its members becomes involved in litigation or have the litigation adjudicated arising from its underwriting of securities; or becomes bankrupt, a debtor in a compulsory execution, or issues checks that are dishonored by banks, or any financial institution refuses to transact with it, or that under the Securities and Exchange Law such person should be punished by removal from office.
2. addition or withdrawal of members.
3. the manner of disposition by the association against members which have violated this Law or other relevant laws and regulations, or violated the articles of incorporation or regulations of the securities exchange or over-the-counter securities exchange.
4. occurrence of litigious matters arising from the underwriting of securities by members.
5. results of the review of financial records of members.
6. resolutions of the board of directors.
7. other matters required to be reported under the regulations of this Commission.
The matters referred to in Items 1 through 4 of the preceding Article shall be reported to this Commission within 5 days of its occurrence or completion of disposition thereof; the matter referred to in Item 5 shall be reported at the end of each month by collating the results of the reviews completed in that month.
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Article 12
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A securities dealers association shall formulate mediation rules for resolving disputes between members and investors or between members arising from securities transactions and submit such rules to this Commission for its review and record and further ensure that they are implemented.
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Article 13
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A securities dealers association shall formulate internal organizational rules regarding the organization of its internal units, assignment of employees and titles thereof and submit such rules to this Commission; the same procedure shall apply with changes thereof.
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Article 14
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A securities dealers association shall formulate service rules regarding employees working on associational matters and submit such rules to this Commission; the same procedure shall apply with changes thereof.
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Article 15
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Where there are changes in the directors, supervisors, or managers of a securities dealers association, within 5 days of such change, the securities dealers association shall report the change to this Commission.
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Article 16
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Where there are changes in non-manager employees of a securities dealers association, the securities dealers association shall provide monthly reports and submit such to this Commission.
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Article 17
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The employees of a securities dealers association working on associational matters shall not in any manner concurrently work as an employee of, or assume any honorary titles for securities firms.
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Article 18
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Where the employees of a securities dealers association working on associational matters delay or fail to execute their business duties, the securities dealers association shall terminate their duties or take other appropriate dispositions.
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Article 19
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The directors, supervisors or employees of a securities dealers association working on associational matters shall not engage in any of the following actions:
1. to directly or indirectly engage in securities transactions using information learned from their scope of work.
2. to disclose confidential information learned from their scope of work not in response to a legal inquiry.
3. to engage in false, fraudulent, or other actions sufficient to mislead others while processing matters related to securities transactions.
4. to engage in other actions in violation of the securities regulatory laws and regulations, or of other required or prohibited actions set by this Commission.
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Article 20
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Securities dealers associations and their directors or supervisors which violate these Regulations shall be punished in accordance with this Law.
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Article 21
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These Regulations shall become effective on the date of promulgation.
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