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Taiwan Stock Exchange Corporation Regulations Governing Brokerage Contracts of Securities Brokers(2013.12.31) |
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Article 2
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Where any of the following conditions apply, securities brokers shall refuse to open an account for a principal; if an account has already been opened, the securities broker shall refuse to accept trading orders or subscriptions for securities:
- The principal has either no legal capacity or limited legal capacity, and is acting without the representation of a statutory agent.
- The principal is an officer or employee of the competent securities authority.
- The principal is an employee of the TWSE that has not submitted a TWSE letter of consent.
- The principal has been declared bankrupt and restoration of rights has not been effected.
- The principal has been declared by a court to be placed under guardianship where such declaration has not yet been voided, provided that this restriction shall not apply where the guardian disposes of the securities for the interests of the person under guardianship.
- The principal has been declared by a court to be placed under assistance, where such declaration has not yet been voided, provided that when a court or the person providing assistance to the person subject to the declaration grants permission, this restriction shall not apply.
- The principal is opening an account for a juristic person but cannot provide evidence of authorization.
- The principal is a securities broker that has not received approval from the competent authority or the stock exchange.
- The principal has engaged a director, supervisor, or employee of a securities firm to act as agent in opening an account at said firm.
- The same principal in discretionary investing opens more than one account with the same discretionary trader at the same business location of the same securities broker, provided that this restriction shall not apply when the principal is a government-sponsored fund such as a civil servants' retirement/disability fund, labor retirement fund, labor insurance fund, or postal remittance fund, and that when engaging the same discretionary trader to undertake discretionary investment, the principal opens different discretionary investment accounts at the same business location of the same securities broker so as to correspond to the different respective discretionary trading contracts employed.
Where any of the following conditions apply, securities brokers shall refuse to open an account for a principal and shall refuse to accept orders for trades or subscriptions to securities on an already-opened account:
- When the TWSE or the GreTai Securities Market has sent a general notice to securities brokers that the principal is in default through failure to perform settlement obligations on time, and less than 5 years have passed while conclusion of the case is still pending. However, after a securities broker's receipt of the notice, this provision does not apply to brokerage trades made for purposes of offsetting margin purchases or short sales that were already executed for the same principal on the same day and are of the same type and same quantity of securities, nor does it apply to sales by the principal in brokerage day trading on the same day in accordance with the Operational Rules Governing Day Trades of Securities.
- An indictment has been issued against the principal by the public prosecutor for violation of the Securities and Exchange Act or for forgery or alteration of listed or OTC securities, where a judgment is still pending or where not more than five years have passed following issuance of a final and conclusive judgment by the court.
- Where the principal is in default of its futures trading contract and less than five years have passed while conclusion of the case is still pending, or where the principal has violated regulations for management of futures trading and not more than five years have passed since the issuance of a final and conclusive criminal judgment by the judicial authorities.
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