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Amended Article


Guidelines Governing the Creation of Customer Ledgers of Securities Firms' Settlement Accounts  CH

Amended Date: 2020.05.27 
Categories: Market Supervision > Regulation of Securities Firms
Article 2     Pursuant to Article 38, Paragraph 2 of the Regulations Governing Securities Firms, a securities firm that retains customers' settlement funds in the securities firm's settlement account ("Settlement Account") with customers' consent shall comply with securities exchange laws and regulations and the rules, regulations, public notices and letter directives of the TWSE, TPEx, Taiwan Depository & Clearing Corporation (“TDCC”) and Taiwan Securities Association ("TSA").
Article 12     A template of the contract shall be created by the TSA, presented to the competent authority for reference, and state the following:
  1. Scope of retention of the customer funds
  2. Scope of payment service provided to the customer and the order in which it is rendered
  3. Terms of settlement and payment of interest
  4. Procedures for the customer's reclaim of its funds
  5. Ways for the customer to inquire about its funds
  6. The securities firm shall retain receipt and payment records regarding funds in the customer's ledger
  7. Schedule of the securities firm's management fees
  8. Effective date of the contract and ways to handle amendments and termination of the contract
  9. Pursuant to the Personal Information Protection Act and relevant laws and regulations, the customer agrees the securities firm may furnish information pertaining to the customer's ledger to the TWSE, TPEx, TDCC and other institutions designated by the competent authority
  10. Dispute resolution
Article 15     A securities firm that retains funds in the Settlement Account with customers' consent shall keep detailed records and prepare the following report and statement on a daily basis:
  1. Daily report on the receipts and payments of funds in the customer's ledger in the securities firm's Settlement Account
  2. Statement of receipts and payments of funds in individual customer ledgers in the securities firm's Settlement Account
    The above report and statement may be stored in electronic media after completion. Such media must be equipped with functions disallowing alteration and cancellation and enabling conversion into written form at any time.
    The securities firm shall send the daily report mentioned in the first paragraph of the previous day to the TWSE before 10 A.M. each day, to be forwarded by the TWSE to the TDCC to be made available to customers for consultation.
    Reports and statements, supporting documents and other documents relating to the creation of customer ledgers in a securities firm's Settlement Account shall be retained for at least five years or for any longer period of time prescribed by other applicable laws and regulations, provided in the event of a dispute, they shall be retained until the dispute is eliminated.
Article 22     Any violation of these Guidelines by a securities firm or its responsible person or employees is governed by the applicable rules of the TWSE, TPEx, TDCC and TSA.