| Title： |
Operating Rules of the Taiwan Stock Exchange Corporation(2005.08.01) |
| Date： |
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Article 76
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Upon discovering that the principal satisfies any of the following circumstances, a securities broker shall refuse to open an account, or refuse to take consignment from those already opened an account with the securities broker to trade or subscribe listed securities:
1. Minors who do not have the agency or authorization of their legal guardian.
2. Personnel or employees of the Competent Authority in charge of securities matters and of this Corporation.
3. Persons declared bankrupt and rights have not been reinstated.
4. Interdicted persons who are not represented by their statutory agents.
5. Juristic persons opening accounts that cannot supply proof that there is authorization to open the account.
6. Securities dealers which have not been approved by the Competent Authority.
7. Consigning the directors, supervisors, and employees of a securities firm to open an account with such securities firm on behalf of the principal.
8. More than one account for discretionary investment consignment has been opened at the same business premises of the same securities broker by the same principal with respect to the same consignee; provided, this restriction shall not apply to a principal that is a government fund such as a civil servant pension fund, labor pension fund, labor insurance fund, or postal remittance and savings fund and that, when consigning a same consignee for consigned discretionary investment, may open, at the same business premises of the same securities broker, different discretionary investment consignment accounts for different consignment contracts.
9. An offshore foreign institutional investor has opened more than one investment trading account at the same business premises of the same securities broker; provided, this restriction shall not apply if it is one that is permitted under this Corporation's Directions for Registration of Securities Investment by Overseas Chinese and Foreign Nationals to open more than one investment trading account at the same securities broker (including branches).
Upon discovering that the principal satisfies any of the following circumstances, a securities broker shall refuse to open an account, or refuse to take consignment from those already opened an account with the securities broker to trade or subscribe listed securities:
1. Any person that has breached a contract relating to securities trading, where this Corporation or the Over-the-Counter Securities Exchange have notified all securities brokers of this fact, where the case has not been closed and less than five years have elapsed.
2. Any person that has violated the Securities and Exchange Act or been suspected of forging (altering) listed or OTC securities documents and has been under public prosecution, or has been adjudicated criminally guilty by a final and unappealable court judgment within the last five years.
3. Any person that has breached a futures contract where the case has not been closed and less than five years have elapsed, or that has violated future trading laws or regulations and has been adjudicated criminally guilty by a final and unappealable judgment of a judicial authority within the past five years.
Upon conclusion of a case of breach of a consignment contract by a principal, the securities broker shall promptly report such conclusion to this Corporation; this Corporation will in turn inform all other securities brokers.
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