• Font Size:
  • S
  • M
  • L

Relevant Laws

Title:Operating Rules for Custody and Investment of Funds by Securities Firms on Behalf of Customers (2015.03.31)
Article 27     A securities firm using funds from the cash management account to engage in repo transactions shall do so with counterparties that have, during the most recent year, a long-term credit rating at or above a prescribed level from a credit rating agency as listed in Appendix 1.
Article 28     A securities firm using funds from the cash management account to engage in repo transactions may not engage in any transaction with one single counterparty resulting in a combined outstanding balance in excess of 100% of the counterparty's net worth as shown in its latest CPA-audited and attested financial report.
Article 36     A securities firm using funds from the cash management account to invest in funds shall do so in compliance with the following:
  1. Its investment in beneficial certificate units of any single securities investment trust fund may not exceed 10% of the net asset value of that fund.
  2. Its investment in beneficial units of securities investment trust fund(s) offered and issued by any single securities investment trust enterprise may not in total exceed 20% of the total amount of invested funds.
  3. Its investment in quasi-money market funds within the category of bond funds may not in total exceed 10% of the total amount of invested funds.
Article 40     A securities firm using funds from the cash management account to engage, with the securities firm itself or with a company that is an interested party of the securities firm, in transactions involving eligible instruments specified in Article 10 may not engage in such transactions in a total amount exceeding 50% of the total amount invested.
    A securities firm using funds from the cash management account to invest in subject instruments under outright transactions may not invest in such instruments in a total combined amount exceeding 20% of the total amount invested.