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Article 16-1
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An FCM that applies to concurrently engage in securities business shall meet all of the following requirements:
- Its CPA-audited and attested financial report for the most recent period shows no accumulated deficit, is in compliance with Article 17 of the Regulations Governing Futures Commission Merchants, and is free of the circumstances specified in Article 22 of those same Regulations.
- It has not been subject to a warning sanction by the FSC in the most recent 3 months.
- In the most recent half-year it has not been subject to any FSC sanction under Article 66, subparagraph 2 of the Act ordering the company to dismiss any director, supervisor, or managerial officer from office, nor subject to any FSC sanction under Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act ordering it to dismiss its responsible person or other relevant personnel.
- It has not been subject to any FSC sanction suspending business operations in the most recent year.
- It has not been subject to any FSC sanction revoking a portion of its business permit in the most recent 2 years.
- It has not, in the most recent year, had its trading operations suspended or restricted pursuant to the bylaws of a futures exchange or futures clearing house.
- Other requirements as specified by the FSC.
If an FCM is not in compliance with a requirement in subparagraphs 2 to 6 of the preceding paragraph, but the circumstances have shown concrete improvement, it may be exempted from those restrictions with the approval of the FSC.
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