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Article 75
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Securities brokers conducting brokerage trading of securities shall comply with the following provisions:
1.When accepting an account opening for processing, a securities broker shall first enter into a brokerage contract with the principal, recognize the TWSE's articles of incorporation, operating rules, public announcements, and circular letters, the regulations of the Taiwan Securities Association, and the Rules Governing Brokerage Contracts of Securities Brokers as integral parts of the contract, and specify the date of account opening and the following matters:
(1) For a principal that is a natural person: name, gender, age, occupation, address, telephone number, and National Identity Card number; if there is an agent, the agent's name and National Identity Card number.
(2) For a principal that is a juristic person: the juristic person's name, address, government uniform invoice number, phone number, representative, and authorized person.
2. For a principal that is a person of no legal capacity or limited legal capacity, his/her statutory agent shall sign/seal the brokerage contract and indicate the kinship relationship. All business vouchers for brokerage trading of securities, subscription of securities, and settlement matters shall be signed/sealed by the statutory agent.
3. For a principal that is a juristic person, such juristic person and its representative shall sign/seal the brokerage contract, and a power of attorney shall be provided. All business vouchers for brokerage trading of securities and settlement matters shall be signed/sealed by the authorized person.
4. A director, supervisor, or employee of a securities firm may not open an account, engage in the brokerage trading of securities, purchase securities, or handle settlement-related matters on behalf of any other person, unless he/she is the statutory agent or guardian of the principal.
5.When the principal or his/her/its statutory agent or authorized person signs the brokerage contract, a seal specimen card or signature card of the principal or the principal's statutory agent or authorized person shall be kept, and that same seal or signature shall be used for any orders placed in person for brokerage trading or subscription of securities and for the procedures for carrying out settlement. That same seal or signature shall also be used when the above matters are performed by an agent engaged by the principal or its statutory agent to do so on its behalf.
6. When a principal or his/her/its statutory agent authorizes an agent to engage in brokerage trading, purchase securities or process settlement-related matters, a power of attorney shall be issued, and the seal specimen or signature card of such agent shall be kept for handling.
7. Where settlement of the principal's payment and securities is to be made by the book entry method, and where a letter of consent is signed, signature/seal of the settlement slips (order tickets for non face-to-face orders, trade reports, etc.) may be waived. However, before settlement, information relevant to the brokerage trade shall be given to the principal and a confirmation record shall be kept on file. Where, pursuant to law or regulation, the principal may effect receipt or payment of the purchase price by account transfer (or remittance), signature/seal of the settlement slips (order tickets for non face-to-face orders, trade reports, etc.) may be waived. However, before settlement, the securities firm shall give notice of information relevant to the brokerage trade to the principal and the custodian institution to be the agent for trade settlement, and shall keep a confirmation record on file.
8. A securities broker may not use computer-set groups in handling securities trading orders. The order ticket and trading order record shall record information pursuant to Articles 4 and 12 of the Regulations Governing Information to be Published in Order Tickets, Trade Reports, and Reconciliation Statements Prepared by Securities Brokers Upon Receiving Orders to Buy or Sell Securities of the Competent Authority, and be prepared in accordance with the following provisions:
(1) Trading through non-electronic media:
i. For trading orders placed in person: the principal or its agent or authorized person that places trading orders for securities in person shall fill out an order ticket and affix their signature/seal thereto.
ii. For trading orders placed via telephone, in writing, or by telegraph: if the principal, or its agent or authorized person places an order for trading of securities via telephone, in writing, or by telegraph, the associated person handling the order at the securities broker that accepts the order shall fill out the order ticket by hand or electronic means; if trading orders are placed in writing or via telegraph, the letter or telegram shall be attached to the back of the order ticket.
Where the securities broker fills out the order ticket by electronic means, if delegation of responsibility for the execution of the trading order can be implemented and the employee handling that trading order confirmed, order tickets need not be printed out individually, provided that they shall be stored using a non-revisable, non-erasable electronic medium.
(2) Trading through electronic media:
Means that a principal uses voice mail, the Internet, dedicated line, closed private network, or other electronic means approved by the TWSE to place a trading order, which the securities broker shall handle in accordance with the following provisions:
i. Where a trading order is placed through an electronic medium, the securities broker need not prepare or fill out an order ticket on the client's behalf.
ii. If a trading order is placed via the Internet, the internet protocol (IP) address and electronic signature thereof shall be recorded. If a trading order is placed via voice mail, through coordination with the telecommunications institution the caller-end number display function shall be enabled, and the number of the incoming call recorded.
(3) When a securities broker accepts a trading order through non-electronic media, and uses electronic media to fill out the order ticket, or accepts a trading order through electronic media, it shall print trading order records in chronological order, and after close of market, have them signed/sealed by the brokerage personnel handling the order. However, if the storage operations of the trading order record meet the following requirements, the trading order record need not be printed out and signed:
i. A non-revisable, non-erasable electronic storage medium is used, and preparation of trading order records is completed on the day the trade is executed.
ii. Comprehensive indexing and and management procedures are set up.
iii. Management responsibility is assigned to designated personnel, and electronic data files can be converted into print format at any time.
9. The transmission of the order for purchase/sale of securities, order confirmation, execution report, and other electronic documents between a securities broker and the principal who uses an electronic trading method other than voice mail shall carry the electronic signature issued by the institution providing vouchers for identification and confirmation; however, this restriction shall not apply in the following circumstances:
(1) Order confirmation and execution report are conducted by telephone, facsimile, text message, voice menu system, or the Internet.
(2) The conditions for exemption are met under the Operational Guidelines for the Implementation of Direct Market Access by Futures Brokers.
10. The order ticket referred to in subparagraph 8 shall be numbered in the order it is received. Its format and particulars to be recorded shall be as prescribed by the Competent Authority. When there is any dispute in connection with a trade, the order ticket shall be kept until the dispute is resolved. When there is no dispute, order tickets shall be kept in accordance with the following provisions:
(1) For unexecuted trades: destroy after one week; however, if an order ticket is filled out by hand, it shall be stamped "Unexecuted".
(2) For executed trades: if there is no dispute, keep for five years together with other business vouchers.
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Article 75-1
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A securities broker opening an account for a principal shall comply with the following:
1. Except the following situation, if the principal is a natural person, he/she shall open the account against the original identity card and put signature/affix seal personally:
(1) where the principal is of no legal capacity or limited legal capacity, his statutory agent or guardian shall open the account against the original identity cards of the statutory agent or guardian and the principal and put the signature/affix seal personally. If the principal has not received an identity card yet, a transcript of household register or household register may be supplied instead. The guardian shall provide a certificate of guardianship.
(2) where the principal is a person dispatched by a juristic person to work overseas, he may entrust an agent to open the account against the original identity cards of the agent and the principal as well as the power of attorney and certificate of employment overseas issued by the said juristic person, both legalized by an ROC representative office or an institution entrusted by such office.
(3) where the stipulated limit on the daily trading amount of the principal does not exceed NT$1 million, and where a margin trading account is not opened, the securities broker may accept the account opening by the principal through internet, correspondence or other means. The account shall become effective after the brokerage contract has been signed by the principal and confirmed by the securities broker. The securities firm may at its own discretion conduct credit investigation on the account opened in such way; provided that when the limit on the daily trading amount is adjusted in future, credit investigation shall be conducted again in accordance with relevant rules.
2.Where the principal is a juristic person, the authorized person shall provide a copy of the registration document of the juristic person, a copy of the notice of issuance of uniform number for taxable entities issued by the tax authorities (a profit-seeking enterprise may be exempt from submitting such copy of notice), the power of attorney, and photocopies of the identification cards of the responsible person of the juristic entity and that of the authorized person for processing. The securities broker shall confirm in writing that the account is opened through authorization.
3. If the principal has engaged 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 confirm in writing that the account is opened through authorization.
4. Where the principal is a group that is not incorporated as a juristic person, it shall open the account in the individual name of its responsible person, and include the group name side-by-side therewith in the account name. To open the account, the responsible person shall submit a photocopy of certification that the group has been registered with the competent authority (or of its approval for establishment, recordation, or other evidentiary document of its registration), photocopy of the notice of issuance of a uniform number for tax withholding entities issued by the tax authorities (if exempt from income tax withholding, one copy of the Certificate of Exemption from Tax Withholding must also be submitted), and a photocopy of the National Identity Card of the responsible person. At the time the account is opened, a central securities depository account shall also be opened, and the securities shall be deposited. However, the account may be used only for sell orders, and may not be used for buy
orders, and when the securities broker accepts a sell order, the broker shall first collect in full the securities to be sold before it may proceed to place a quote for the sale.
5. Except for certain account numbers that it may handle as an account without a number under exceptional circumstances for which reasons have been noted, the securities broker shall assign an account number sequentially to each account in the order opened; provided that numbers cancelled in (calendar) years other than the current year may be used sequentially.
A securities broker shall ensure that the items supplied on the applications are error free and complete. It shall not accept any order to trade in or subscribe to securities from the principal unless it completes the account opening process and the written confirmation procedures referred to in subparagraphs 2 of the preceding paragraph and keys-in the account information and account number into the computer system of the TWSE.
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