| Title： |
Operating Rules for Securities Firms Handling Margin Purchases and Short Sales of Securities(2009.12.09) |
| Date： |
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Article 11
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A customer who is a natural person applying to open a margin account shall personally furnish the original of his or her national ID card, sign a Margin Account Application Form and a margin agreement then and there, and also provide a specimen seal or signature card, a certificate of income and property, and trading records.
Where the customer is a juristic person, the account opening procedures under the preceding paragraph shall be carried out by an authorized person who shall present a power of attorney, the original national ID cards of the authorized person and the customer's representative, the original incorporation/amendment registration card, and the original certification of incorporation.
A photocopy of each of the identity documents and incorporation/amendment registration card and the original power of attorney under the preceding paragraph shall be retained on record, and the following statement shall be stamped on the photocopies: "The account opening application is confirmed to have been made in person by the applicant or a person authorized thereby; this is a true and faithful copy of the original."
When processing an application to open a margin account, a securities firm shall perform a detailed and accurate credit check to verify that the customer meets the account opening threshold requirements. It shall expressly state on the Margin Account Application Form the details of the credit check method, credit information, and credit check findings, and prepare an account opening card specifying the date of account opening and the assigned account number. It shall transmit the account opening information, or account cancellation information if such is the case, on the current day to the computer database of the TSEC or GreTai. Where the customer is a juristic person, the securities firm shall also send a written request to the customer confirming that the customer has authorized the opening of the account.
If the customer empowers a custodian institution to open the account on its behalf, or submits proof that settlement is to be handled on its behalf by a custodian institution, it is not necessary to send a written request to confirm that authorization has been granted for the opening of account.
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