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Regulations Governing Responsible Persons and Associated Persons of Securities Firms  CH

Amended Date: 2021.05.06 

Title: Regulations Governing Responsible Persons and Associated Persons of Securities Firms(2008.12.22)
Article 10 Managers of departments as set forth in Article 8, paragraph 1, and the assistant general managers, deputy assistant general managers, and managers of those departments, or who supervise those departments, and responsible persons of securities firms' branch units shall possess one of the following qualifications:
1. Graduate of a local or foreign junior college recognized by the Ministry of Education, or an equivalent or higher degree, with three years or more of business work experience in securities, futures, finance, or insurance, with a good performance record.
2. Four years or more of work experience at a securities institution, with a good performance record.
3. Other academic or work qualifications demonstrating possession of professional knowledge of securities and operations and management experience that would enable sound and effective management of securities firm business.
The chief internal auditor of an exchange-listed or OTC-listed securities firm or of a securities subsidiary of a financial holding company, in addition to possessing a qualification set forth in the preceding paragraph, shall have an occupational rank equal to that of an assistant general manager or equivalent position, and may assume their position only after the candidate is reported to the Commission for review and found to be qualified.
For a branch unit of a foreign securities firm within the ROC, managers of departments that engage in underwriting, proprietary trading, brokerage trading, clearing and settlement, and internal auditing shall possess the qualifications set forth in the preceding paragraph.
The provisions of paragraph 1 shall apply mutatis mutandis to positions that are equivalent to assistant general manager, deputy assistant general manager, or manager under other laws or the articles of incorporation of a securities firm.
Article 18-1 In supervising internal audit work, the chief internal auditor of a securities firm may not do any of the following:
1. Without approval from the Commission, disclose, deliver, or make known the content of the financial examination report, in whole or in any part, to personnel not related to the performance of occupational duties.
2. Issue an untrue internal audit report in connection with internal audit work.
3. Fail to discover a serious deficiency in financial or business operations due to the securities firm's deployment of an obviously insufficient number of, or incompetent, internal auditors.
4. Fail to follow the Commission's instructions in conducting audit work or providing relevant information.