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Title：

Taiwan Stock Exchange Corporation Operation Procedures for Appeals Filed by Securities Firms or Employees thereof in Disposition Cases  CH

Amended Date： 2023.08.23 
Categories： Market Supervision > Regulation of Securities Firms
Article Content Content Search Article No. Search Amended Article Legislative History Chinese

Title： Taiwan Stock Exchange Corporation Operation Procedures for Appeals Filed by Employees of Securities Firms in Disposition Cases(2014.11.27)
Date：
1     These Procedures are adopted by the Taiwan Stock Exchange Corporation (TWSE) to handle appeals filed by employees of securities firms ("appellants") who do not accept dispositions imposed by the TWSE under Article 144 of the TWSE Operating Rules.
2     An appeal may be filed with the TWSE by a person subject to a disposition, the securities firm where the person was employed when the fact occurred that provided cause for the disposition, or the securities firm where the person is currently employed ("appellant"), by the date specified in the TWSE's written notice of the disposition or within 30 days counting inclusively from the day following receipt of the notice (whichever comes later). The appeal shall specify the following information in writing and append supporting evidence or materials:
  1. The name, national ID number (or Alien Resident Certificate number), year, month, and date of birth, and contact address of the person subject to the disposition. If the appellant is a juristic person, the name and address of the company, the name of its representative, the year, month, and date of their birth, and their ID number (or Alien Resident Certificate number) and contact address.
  2. The reference number, effective date of the disposition, and the name, article, and paragraph number(s) of the law or regulation violated, as stated in the original notice of disposition.
  3. The reasons for disagreeing with the disposition imposed by the TWSE, and the modifications that the appellant requests be made to the disposition.
    If the appeal is filed by a securities firm, a consent form from the person subject to disposition shall be attached.
3     If the original disposition in an appeal case was a notice to the securities firm to suspend the employee's execution of business activities, the securities firm shall cease implementing the disposition from the day on which it files the appeal, or the day on which it knows of the appeal filed by the person subject to disposition or by the original securities firm where the person worked. Depending on the circumstances, the securities firm shall adopt one of the following measures, provide a written report to the TWSE for recordation, and provide a copy of the report to the Taiwan Securities Association:
  1. Adjusting the business activities of the person subject to disposition, assigning them activities different from those at the time the fact occurred that provided cause for the disposition.
  2. Adopting rules for supervising the person subject to disposition during the appeal period, if the person's business activities continue to be the same as those at the time the fact occurred that provided cause for the disposition.
     If the appeal is rejected, the appellant withdraws the appeal, or the Appeal Review Committee resolves to maintain the original disposition or change the period during which the appellant ceases business activities, implementation of the disposition shall continue from a date designated by a notice from the TWSE.
4     Upon receipt of an appeal case, the TWSE will convene a meeting of persons from relevant departments to review the appellant's qualification, the reasons for the appeal, and the supporting evidence or materials under Point 2.
    The appeal will be rejected if not filed by the appellant within the time limit under Point 2, the appellant is not qualified, the reason for the appeal is not related to the original disposition, or the appellant has not supplemented incomplete documents, data, or content within the time limit prescribed by the TWSE.
    If the TWSE rejects an appeal pursuant to the preceding paragraph, it shall provide the appellant with a written notice of the reasons. An appellant who has an objection against the decision shall file an application for re-appeal with the TWSE, specifying the reasons, within 5 days counting from the day following receipt of the notice. An application for re-appeal may be made one time only.
     An appellant may withdraw the appeal through written notice prior to the convening of the Appeal Review Committee. The TWSE will close the case upon receipt of the notice of withdrawal.
5     When an appeal is accepted, the TWSE, within 30 business days from the appeal date, shall convene the Review Committee for Appeals by Securities Firm Employees Against Dispositions (the "Appeal Review Committee"). The meeting notice and materials relating to the appeal shall be delivered to the members of the Appeal Review Committee 7 days before a committee meeting is held.
6     The Appeal Review Committee is composed of 13 members as follows:
  1. External members:
    1. The Taiwan Securities Association shall appoint four representatives for each meeting, and provide the list of representatives to the TWSE three days prior to the meeting.
    2. The TWSE shall select five representatives who are fair and impartial persons with expertise in law and securities practice and who are not employed at any securities firms to serve a 1-year term. In the event of a change of duties or resignation by any representative, the TWSE may select a new representative to complete the term of office.
  2. Internal members: The TWSE shall appoint four other members, consisting of the TWSE Senior Executive Vice President and the heads of the Trading Department, Intermediaries Service Department, and Secretarial & Legal Department, or a person appointed thereby, for each meeting.
7     The Appeal Review Committee shall have one chairperson, to be filled by the TWSE Senior Executive Vice President. When the chairperson is unable for any reason to convene a meeting, his/her deputy shall serve as the acting chairperson.
     Members of the Appeal Review Committee shall personally attend the meetings, and may not appoint another to serve as their agent; nor are they allowed during meetings to appoint another to exercise powers on their behalf. Members that leave before a meeting's end may not exercise their voting rights.
8      The Appeal Review Committee shall discuss the reasons for the appeal, the supporting evidence submitted, and the follow-up audit findings, and handle the case as follows:
  1. The Appeal Review Committee shall notify the person subject to the disposition and the securities firm that submitted the appeal, requesting them to appoint personnel to attend the meeting of the Appeal Review Committee to give statements. The person subject to the disposition and the securities firm that submitted the appeal may attend the meeting accompanied by other third persons from the company.
  2. A member of the Appeal Review Committee shall enter recusal if they are directly or indirectly an interested party with respect to the appellant, and may not participate in discussions or voting, nor is the member allowed to appoint another member as agent, or to serve as agent for another member.
  3. The chairperson and the members of the Appeal Review Committee have one vote each. A resolution of the Committee requires the approval of a majority of the members present at a meeting attended by two-thirds or more of the members.
  4. Voting by the Appeal Review Committee shall be carried out as follows:
    1. The Appeal Review Committee shall vote on whether to maintain or revoke the original disposition.
    2. When a resolution is made to revoke the original disposition, the Committee shall hold a further vote on whether the Committee will change the disposition or return the case to the TWSE for a new disposition. If both options receive the same number of votes, or if no resolution can be passed after discussions on how to change the disposition, it will be deemed that the case is to be sent back to the TWSE for a new disposition.
     If the original disposition is revoked and a new disposition made, the TWSE may not, on the basis of the same facts, change the disposition to one unfavorable to the original person subject to disposition.
     The person subject to disposition and the appellant may not file any further appeal against a resolution made by the Appeal Review Committee or a new disposition made by the TWSE in response to the specific instructions in the resolution returning the case to it. This restriction does not apply when the case is returned to the TWSE with instructions to investigate the facts that provided cause for the original disposition in order to make a new disposition.
9      The TWSE shall provide notice of the resolution made by the Appeal Review Committee to the person subject to disposition, the securities firm where person worked when the fact occurred that provided cause for the disposition, and the securities firm where the person currently works, with a copy to the competent authority. The letter giving notice shall include the following:
  1. The appellant's name, their national ID number (or Alien Resident Certificate number), the year, month, and date of their birth, and their contact address. If the appellant is a juristic person, its name, business office, or operating location, and the name of its manager or representative, the year, month, and date of their birth, their ID number, and their domicile or residence.
  2. The facts, reasons, and legal basis for the resolution.
  3. The reference number and the year, month, and date of the notification.
10     These Procedures, and any amendments hereto, shall be publicly announced and implemented after approval by the president of the TWSE.