• Font Size:
  • S
  • M
  • L
友善列印
WORD

Article NO. Content

Title:

Regulations Governing Responsible Persons and Associated Persons of Securities Firms  CH

Amended Date: 2020.10.26 (Articles 10 amended,English version coming soon)
Current English version amended on 2020.01.15 
Article 18     Responsible persons and associated persons of a securities firm shall conduct business in accordance with the principles of honesty and good faith.
    Except where otherwise provided by law or regulation, responsible persons and associated persons of a securities firm may not engage in the following conduct:
  1. Engaging in the trading of exchange-listed or OTC-listed stocks with information learned on the job for the purpose of obtaining speculative profit.
  2. Disclosing information regarding a customer order or other secrets learned as a result of the job, other than in response to inquiries made in accordance with laws or regulations.
  3. Accepting a customer's trading order with discretionary authority over the type, quantity, price, or purchase or sale of the securities.
  4. Trading securities with a guarantee to the customer of earning profits or with a promise of sharing profits.
  5. Trading securities under an agreement with the customer to jointly assume the losses or profits of the transaction.
  6. Accepting orders from customers to buy or sell securities and concurrently buying or selling the same securities for his or her own account on the opposite side of the trade.
  7. Subscribing or trading securities in the name of the customer or by using the customer's account.
  8. Subscribing or trading securities for the customer in the names of other persons or relatives.
  9. Borrowing or lending of money or securities to or from a customer, or acting as an intermediary for the borrowing or lending of money or securities to or from a customer.
  10. Fraud, deception, or other misleading behavior when engaging in underwriting, proprietary trading, or brokerage trading of securities.
  11. Safekeeping securities, cash, chops, or deposit books of customers, or misappropriating any of those things.
  12. Trading securities for a customer that has not entered into a brokerage contract;
  13. Trading securities other than in accordance with the particulars and instructions of the order placed by the customer.
  14. Providing a customer or unspecified persons with information indicating that the price of certain securities will rise or fall in order to solicit the trading of securities;
  15. Recommending trades in specific stocks to unspecified persons, except as necessary for purposes of securities underwriting.
  16. Accepting customer settlement by means of offsetting a purchase or sale of securities with a sale or purchase of securities of the same type through the same or a different account. However, this restriction shall not apply to settlement by mutually offsetting margin purchases and short sales in margin trading, nor shall it apply to accepting customer settlement by means of mutually offsetting an equal quantity of cash purchases and spot sales of the same security that have been executed through the same account on the same business day, when done in accordance with laws and regulations.
  17. Opening an account, or subscribing, trading, or settling securities as agent on behalf of another person, provided that this restriction does not apply if the responsible person or associated person is the statutory representative of the principal.
  18. Processing the opening of an account, or the subscription, trading, or settlement of securities, for a director, supervisor, or employee of the company on behalf of another person.
  19. Processing the opening of an account for a person other than the principal for whom the account is being opened. However, this rule does not apply if the FSC has provided otherwise.
  20. Processing an application for subscription, trading, or settlement of securities from a person who is not the customer or not an agent with a power of attorney from the customer.
  21. Accepting a trading order despite being aware that the customer is using undisclosed information of a public company that will have a material impact on the stock price of the company or being aware that the customer intends to manipulate the market.
  22. Any agreement between persons engaging in securities underwriting business and an issuing company or its relevant personnel for purposes of obtaining improper profit.
  23. Soliciting, acting as an intermediary for, or promoting unapproved securities or derivative products thereof.
  24. Other conduct in violation of securities laws or regulations or conduct prohibited by the rules prescribed by the FSC.
    Persons referred to in the preceding paragraph also may not engage in any conduct prohibited by securities laws and regulations when conducting their duties.
    The provisions of the two preceding paragraphs shall apply mutatis mutandis to other employees of a securities firm.