| Title： |
Rules Governing Securities Firms Engaging in Consigned Trading of Foreign Securities(2001.10.23) |
| Date： |
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Article 4
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The consigning counter-party of a securities firm entering into a contract accepting the consignment trades of foreign securities shall be limited to the following persons:
1. Persons residing within the Republic of China that are 20 years of age or over and possess the National Identification Card or Alien Residence Certificate.
2. Companies, businesses, or associations that have been approved and registered by the Government of the Republic of China or a foreign government.
In case any of the persons referred to in any Items of the preceding Paragraph has any of the following conditions, a securities firm shall not accept its account opening, and where an account has been opened, such account shall be cancelled:
1. having been adjudged bankrupt and not reinstated.
2. having been adjudicated interdicted, and the adjudication has not been revoked.
3. in case a juristic person consigns to open an account, the inability to produce a power of attorney from such juristic person authorizing the account opening.
4. having a record of breaching a securities trading contract within the last three years, or three years have expired but the case has not been settled.
5. any person who has been sentenced under the Securities and Exchange Law to a penalty more severe than the imposition of a fine, and three years have not elapsed since the completion of sentence execution, the expiration of suspension of sentence, or the pardon of such punishment.
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Article 8
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In accepting the consignment trade of foreign securities, the securities firm shall require that the consignor or its representative or agent complete the consignment order face to face, or an associated person may complete such order in accordance with the consignments given by the consignor, or its representative or agent using letter, telegram, telephone or other electronic means.
The consignment order referred to in the preceding Paragraph shall contain the following particulars:
1. Account number and account holder name.
2. Method of consignment (face to face, letters, telephone, telegram or other electronic means).
3. Date, time, and valid period of the consignment.
4. Type of market.
5. Type and volume of securities.
6. Consignment price.
7. Currency of settlement.
8. Chop of the associated person.
9. Chop of the consignor.
The format of the trading report shall be prescribed by the securities firm and submitted to the securities dealers association for its record.
The consignor or its representative or agent may also use the Internet or other electronic forms of transaction to make consignments; where consignments are made by means of such media, the securities firm may be exempt from producing and filling out the consignment form, provided that a record of consigned trades shall be printed immediately and in the order received for the purpose of verification.
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Article 9
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The provisions of Paragraph 1 of Article 36 of the Regulations Governing Securities Firms shall apply mutatis mutandis to securities firms recommending and accepting consignments to trade in foreign securities.
The regulations governing securities firms recommending trades in foreign securities shall be prescribed by the securities dealers association.
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