| Title： |
Taiwan Stock Exchange Corporation Standards Governing Principal Identification and Management of Credit Line Categorization in the Processing by Securities Firms of Account Opening(2023.11.01) |
| Date： |
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Article 1
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These Standards are established in accordance with Article 75-1 of the Operating Rules of the Taiwan Stock Exchange Corporation and Article 3 of the Taiwan Stock Exchange Corporation Regulations Governing Brokerage Contracts of Securities Brokers.
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Article 2
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A securities firm shall develop the relevant operating procedures of online account opening within its internal control system. When handling such account opening, it shall verify the customer’s identity and documentation, and any of the following procedures shall first be completed:
- The settlement bank shall be contacted for verification.
- Online verification is performed against acitizen digital certificate, bank account information or wafer debit card.
- A photograph from which both the national I.D. card and face are identifiable, together withinformation on the designated debit account of the customer’s ledgers of the securities firm's settlement account, shall be sent online.
- The identity shall be verified by video imaging.
- The identity shall be verified by the mobile ID. Relevant authentication matters to be complied with will be determined by the TWSE.
- The identity shall be verified by other means.
If the identity is verified in accordance with the preceding paragraph, the securities firm shall send a One Time Password, OTP, by text or make a personal telephone call as secondary verification to reinforce validation.
Where a securities firm receives an online account-opening application of a company with not more than three registered shareholders under the R.O.C. Company Act and whose responsible person and shareholders are all R.O.C. natural persons having attained the age of majority, said firm shall perform the identity validation procedure in paragraph 1 in respect of the responsible person and the industrial/commercial certification procedure in respect of the company.
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Article 3
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A securities firm shall determine the type of account and accordingly estimate the principal’s single-day trading limit in accordance with the online account opening identification procedure and agreed strength (appendix).
The single-day trading limit of the first type of account is NT$ 1 million in principle.
For the second type of account, online identity verification shall be conducted against the citizen digital certificate or bank account, and the identity shall be verified by video imaging. With regard to the second type of account, the principal is not subject to the trading limit in the preceding paragraph upon producing financial proof. The securities firm is to determine in its sole discretion the single-day trading limit pursuant to the Taiwan Securities Association Self-Regulatory Rules on Understanding of Customers and Credit Checking and Credit Line Management in Consignment Trading by Members (Self-Regulatory Rules on Credit Checking and Credit Line Management).
For the third type of account, it should be agreed that advance payment be collected or funds be earmarked as prepayment in the securities brokerage trading. The single-day trading limit is estimated as that for the second type of account.
A securities firm shall,in respect of the responsible person of a company applying for account opening online, estimate in accordance with paragraph 1 the single-day trading limit of the account-opening company.
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Article 4
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A securities firm entertaining an application of a principal of the first type of account for adjustingthe single-day trading limit shall validate the principal’s identify in either manner below. The single-day trading limitmay be set as NT$4.99 million in principle, subject to the actual settlement condition and risk management policy. Where online verification is performed as in subparagraphs 2 to 5 below, the securities firm shall also review the principal's financial proof:
- Over-the-counter verification is conducted.
- Online identity verification is conducted against a citizen digital certificate, and the identity is confirmed by video imaging.
- The settlement bank confirms that the principal's bank account was opened as in either of the preceding two paragraphs, and the principal texts back the correct confirmation number from the mobile phone number registered with the settlement bank.
- Confirmation is made by the mobile ID.
- Online identity verification is performed against a bank account (excluding the third type of digital deposit account opened on the Internet).
A securities firm entertaining an application where the single-day trading limit whose adjustment is sought by a principalexceeds NT$4.99 million shall verify the identity of the principal in accordance with any ofthe preceding paragraphs and comply with the Self-Regulatory Rules on Credit Checking and Credit Line Management truthfully.
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Article 5
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These Standards shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.
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