| Title： |
Guidelines Governing the Creation of Customer Ledgers of Securities Firms' Settlement Accounts(2017.12.25) |
| Date： |
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Article 3
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A securities firm that retains customers' settlement funds in the securities firm's Settlement Account with customers' consent shall set up a separate account ledger for each customer, record therein the itemized receipts and payments of funds on a daily basis, and retain the record.
A securities firm that retains customers' settlement funds in the securities firm's Settlement Account with customers' consent shall open a special NTD account in the name of its head office, and may open only one such account with the same bank.
The contract between the securities firm and the bank for the retention of customers' settlement funds in the Settlement Account shall state the following:
- No cash withdrawal from the Settlement Account is permitted. Transfers of funds are limited to accounts with account numbers agreed upon in advance between the securities firm and the bank and, if to be made to a customer, are limited to securities book-entry accounts opened by the customer for TWSE or TPEx securities trading ("Securities Book-entry Accounts") or one savings account of the customer itself as agreed upon with the customer ("Customer Savings Account"). With the exception of a customer's Securities Book-entry Accounts and the Customer Savings Account, all agreed accounts and account numbers shall be reported in writing to the TWSE and TPEx in advance; changes shall be notified to the TWSE and TPEx immediately by the securities firm and the bank.
- Where the total amount transferred from the Settlement Account to the Securities Book-entry Account or Customer Savings Account of the same customer in one day reaches NTD50 million, the bank shall immediately notify the TWSE and TPEx. The bank shall also notify the TWSE and TPEx immediately if withdrawal against the preceding subparagraph is involved in a transfer of funds, in addition to refusing to pay.
- No overdraft, pledge, or exercise of other rights in respect of the Settlement Account is permitted.
- The securities firm agrees the bank may furnish information concerning transactions in the account mentioned in the preceding paragraph as required by the Financial Supervisory Commission, TWSE and TPEx for the inspection of the securities firm's business.
After having stated the following in the contract as referred to in the preceding paragraph, a securities firm may deposit partial funds from the account under term deposit:
- No funds from the Settlement Account ledger deposited under term deposit may be deposited from the account in the form of certificate of deposits or under other arrangement.
- The securities firm shall agree with the financial institution with which funds from the Settlement Account ledger are deposited under term deposit that these funds may be released at any time.
- Upon early termination or expiration of the term of contract in respect of funds from the Settlement Account ledger deposited under term deposit, all principals and interests shall be transferred back to demand deposit through fund transfer.
Where a securities firm is acting in accordance with the preceding paragraph, the percentage ratio of deposited funds shall be kept at such level at which an adequate liquidity of the account is maintained, and the securities firm shall appoint designated staff to control and manage liquidity and security of the account.
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