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Article 12
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A futures commission merchant applying to operate securities introducing broker business shall meet the following requirements:
- It has received no sanction during the last three months under Article 66, subparagraph 1 of the SEA, Article 103, subparagraph 1 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
- It has received no sanction during the last half year under Article 66, subparagraph 2 of the SEA, Article 103, subparagraph 2 or 3 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act.
- It has received no sanction during the last half year under Article 66, subparagraph 3 of the SEA, Article 103, subparagraph 4 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 3 of the Futures Trading Act.
- It has received no sanction during the last two years under Article 66, subparagraph 4 of the SEA, Article 103, subparagraph 5 of the Securities Investment Trust and Consulting Act, or Article 100, paragraph 1, subparagraph 4 of the Futures Trading Act.
- It has not during the last year had its trading privileges suspended or restricted by a securities exchange, over-the-counter securities market, futures exchange, or futures clearing house pursuant to their respective bylaws.
- Other requirements prescribed by the competent authority.
When a futures commission merchant has been sanctioned under any of subparagraphs 1 to 4 of the preceding paragraph and ordered by the competent authority to take corrective action, but at the time of its application to operate securities introducing broker business has nevertheless failed to effect concrete improvement, the competent authority may reject its application.
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Article 21
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When a futures commission merchant receives permission from the competent authority to operate securities introducing broker business, it shall complete amendment of its business registration, then open a special account with a financial institution designated by the competent authority and deposit an operating bond. An operating bond shall also be deposited when a branch unit receives permission to operate securities introducing broker business.
The operating bond required under the preceding paragraph is NT$10 million for the securities introducing broker and NT$5 million for each branch unit.
The financial institution in paragraph one shall be a bank that has been approved to operate custody business, and meets the conditions prescribed by the competent authority.
The operating bonds of paragraph one shall be deposited in the form of cash, government bonds, or financial bonds.
Operating bonds deposited by a futures commission merchant in connection with its operation of securities introducing broker business may not be separately deposited in different institutions, reported lost, or rescinded. The deposited operating bond and associated certificate of depository may not be provided as a security, and unless approved by the competent authority, may not be withdrawn or replaced.
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