||Regulations Governing Responsible Persons and Associated Persons of Securities Firms(2011.10.06)
Associated persons of a securities firm shall be employed full time, provided that this restriction shall not apply if otherwise provided by the FSC.
The following associated persons of a securities firm may not engage in business beyond the scope for which they are registered, normay their business be concurrently performed by associated persons, unless so prescribed in other laws or regulations:
In the case of a futures commission merchant that concurrently operates securities business, if any of its associated persons possesses the qualifications for both securities and futures business, then those an associated person, when engaging in the business of account opening, brokerage trading, proprietary trading, clearing and settlement, internal auditing, risk management, and in-charge accountant within the scope for which the person is registered, may concurrently handle securities business and futures business of the same nature.
- Associated persons engaged in securities brokerage trading.
- Associated persons engaged in proprietary trading of securities.
- Internal auditors.
In the case of a futures commission merchant that concurrently operates securities business, a managerial officer of the department that handles brokerage trading, proprietary trading, or clearing and settlement business, who furthermore meets the qualifications set out in Articles 8 and 10 herein, may concurrently serve as a managerial officer of the futures department that handles business of the same nature.
Except as otherwise provided by law or regulation, the provisions of paragraph 3 and the preceding paragraph shall apply mutatis mutandis to financial institutions other than futures commission merchants that concurrently operate securities business.
An agent of a securities firm shall neither execute nor concurrently engage in the business of a senior agent.
A securities firm shall have one general manager, who shall be responsible for the overall administration of the business operations of the entire company. The securities firm may not have any other person in a position with equivalent responsibilities.
The general managers of securities firms shall be of upstanding character and possess the ability to effectively lead and manage a securities firm; with the exception of general managers of securities firms concurrently operated by financial institutions, to whom the provisions of other acts and regulations may apply, general managers shall possess at least one of the following qualifications:
When hiring a general manager, a securities firm shall first submit documents verifying that its candidate meets the qualifications of the preceding paragraph to the stock exchange, the ROC Securities Dealers Association, or the GreTai Securities Market for their review and approval, after which they shall be forwarded to the FSC for its review and approval, before the candidate may fill that position.
- Graduation from a local or foreign junior college recognized by the Ministry of Education, or an equivalent or higher degree, with 5 or more years of sales experience in securities, futures, finance, or insurance, and having held the position of assistant general manager or an equivalent position for 1 year or more at a securities or futures institution, or the position of manager or an equivalent position at a securities or futures institution for 3 years or more, with a good performance record.
- Six years or more of work experience at a securities institution, and having served in the position of assistant general manager or an equivalent position at a securities or futures institution for 1 year or more or in the position of manager or an equivalent position at a securities or futures institution for 3 years or more, with a good performance record.
- 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 provisions of the preceding two paragraphs apply mutatis mutandis to the responsible persons of a foreign securities firm's branch unit within the ROC.
The chairman of a securities firm may not concurrently serve as its general manager. This restriction, however, does not apply under any of the following circumstances if approval is obtained from the FSC:
- The securities firm does not concurrently operate any other enterprise, operates only one line of business, and has only one business location; or it operates only one line of business, concurrently operates only futures introducing broker business, and has only one business location.
- The securities firm will cease to exist as a result of a merger or dissolution, and its chairman or general manager has resigned or otherwise been unable to continue the performance of duties.
- The securities firm's business permission was voided by the FSC, and its chairman or general manager has resigned or otherwise been unable to continue the performance of duties.
- Any other special cause.
For those who, prior to the 21 February 2003 amendment of these Regulations, were already serving as the general manager of a securities firm or as department manager or responsible person of the branch unit of a securities firm as set forth under Article 8, paragraph 1, may continue to serve in their original position or for the duration of their original term, and will not be subject to the restrictions of Article 9, paragraphs 2 to 4 and the preceding article.
When a person is promoted or assigned to one of the positions named in the preceding paragraph after the amendment of these Regulations, they shall possess or be in conformance with the qualifications set forth in these Regulations; those who do not meet those qualifications shall be dismissed.