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Article 1
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These Guidelines are established pursuant to the requirements under the Financial Supervisory Commission ("Competent Authority") order no. Financial-Supervisory-Securities-Zi-10300522232 dated January 21, 2015.
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Article 5
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When applying for provision of the Services, the securities firm shall meet the following conditions and qualification criteria and complete an application form to be submitted, together with other required documents, to the TWSE. If the TWSE determines the securities firm satisfies the qualification standards and the requirements under these Guidelines in its review, it will forward the application to the Competent Authority for approval:
- Type of securities firm: A qualified securities broker;
- Self-owned capital adequacy ratio: The self-owned capital adequacy ratio declared prior to the application shall be more than 150%;
- The most recent financial report audited or reviewed by the CPA shows no accumulated losses and complies with the provisions of Articles 13, 14, 16, 18, 18-1 and 19 of the Rules Governing Securities Firms; and
- Legal compliance:
- Has not been subject to the penalties under Article 66, paragraph 1 of the Securities and Exchange Act or under Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act within the last three months;
- Has not been subject to the penalties under Article 66, paragraph 2 of the Securities and Exchange Act or under Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act within the last six months;
- Has not been subject to an order of suspension of business by the Competent Authority within the most recent year;
- Has not been subject to a decision on withdrawal or revocation of the business license by the Competent Authority within the last two years; and
- Has not been subject to a decision on suspension of or restriction on trading by the TWSE, GTSM or Taiwan Futures Exchange Corporation according to their operating rules or business regulations.
The restrictions under subparagraph 4 of the preceding paragraph may be waived for a securities firm failing to satisfy the conditions therein if its violation of law has been specifically corrected and so acknowledged by the Competent Authority.
A securities firm permitted by the Competent Authority to provide Money Market Fund Investment Services of Securities Firms may not so provide until after it has submitted a photocopy of the approval document issued by the Competent Authority, with the service commencement date stated, to the TWSE three business days in advance.
Personnel of the securities firm performing the Services shall meet the qualification criteria under the Rules Governing Responsible Persons and Associated Persons of Securities Firms, promulgated by the Competent Authority.
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Article 6
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If, after commencing the Services, the self-owned capital adequacy ratio of the securities firm drops below 150% for two consecutive months, the securities firm shall voluntarily suspend its provision of the Services.
If, upon occurrence of the circumstance described in the preceding paragraph, the securities firm fails to voluntarily suspend its provision of the Services, the TWSE shall request the securities firm to immediately suspend its provision of the Services.
The securities firm shall close the position for its investment in the money market and transfer the money received therefrom to the book-entry account opened by the client for trading of securities on the centralized securities exchange market or GTSM, within one business day following its suspension of the Services.
Upon suspension of its provision of the Services, the securities firm shall immediately report to the TWSE and inform the TWSE of the status of the action as required in the preceding paragraph.
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Article 7
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The securities firm shall not submit an application to the TWSE for resumption of the Services unless its self-owned capital adequacy ratio as reported has exceeded 150% for three consecutive months and shall not resume the Services until the Competent Authority has approved its application forwarded from the TWSE.
The provisions of Article 5, paragraph 3 shall apply mutatis mutandis to the securities firm which has obtained approval for resumption and reported the commencement of the Services.
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