||Regulations Governing Securities Firms(2015.07.03)
A securities firm shall operate its business in a fair and reasonable manner. Factors including operating costs, transaction risks, reasonable profits, and a customer's overall contribution shall be taken into consideration in determining the fees to be collected. It is not permitted to use unreasonable fees to solicit or engage in business.
The advertisements produced and broadcasted by a securities firm shall not be exaggerated or biased.
The self-regulatory rules governing the production and broadcasting of advertisements by securities firms referred to in the preceding paragraph shall be prescribed by the securities dealers' association and submitted to the FSC for recordation.
When any of the following circumstances occurs in connection with any investment by the securities firm as approved by the FSC, the securities firm shall immediately report the reasons to the FSC along with relevant documentation:
For any circumstance under subparagraphs 1 to 7 of the preceding paragraph, unless otherwise provided by the FSC, the securities firm shall report to the FSC in advance.
- Change in business items or material operating policies.
- Change in authorized capital resulting in a change in the original shareholding ratio of the securities firm or its third-region overseas subsidiary.
- Material equity investment in another company.
- Dissolution or suspension of operations.
- Change in the institution's name.
- Merger with another financial institution, or assignment to or receipt of assignment from another of all or a major part of assets or operations.
- Occurrence of reorganization, liquidation, or bankruptcy.
- Occurrence or foreseeable occurrence of any instance of material loss.
- Material violation of law or regulation or the voidance or revocation of the business permit by the overseas competent authority.
- Any other material matter.
Where the overseas subsidiary company invested by the securities firm invests in another institution or where the institution invested by the overseas subsidiary company sub-invests in another institution, if such investment has constituted the substantial controlling and subordinating relationship as regulated under the Chapter governing related enterprises of the Company Act, unless otherwise provided by the FSC, a report shall be made to the FSC for approval before proceeding with the investment.
For the investment of the preceding paragraph that has been approved by the FSC, within 10 days after the actual investment, the related documents shall be provided to the FSC for recordation.
Securities firms investing in overseas enterprises according to paragraph 1 above, may submit the management rules for the foreign invested enterprises required under subparagraph 5 of Article 51 and subparagraph 5 of Article 52 along with the documents referred to in the preceding paragraph to the FSC for recordation within 10 days after the actual investment.