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Article 4
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A promoter of a securities firm shall be disqualified if any of the following circumstances apply:<br/>1. The person has been sentenced by a final and conclusive judgment for having committed an offense against the internal/external security of the state, or is at large for such an offense pending the closing of the case.<br/>2. The person has been sentenced to imprisonment for 1 year or more for having committed fraud, breach of trust, misappropriation, or for having violated applicable laws or regulations governing the regulation of business and industry, and 2 years have not elapsed since the completion of service of the sentence.<br/>3. The person has been sentenced by a final and conclusive judgment for having committed embezzlement during service as a government employee and 2 years have not elapsed since the completion of the sentence.<br/>4. The person has been adjudicated bankrupt and their civil rights have not been restored; or they served as a director, supervisor, managerial officer, or other equivalent position in a juristic person at a time when it was adjudicated bankrupt, and three years have not elapsed since the close of the bankruptcy, or the reconciliation has not been performed..<br/>5. The person has had an event of material loss of credit and the case is not yet closed or 2 years have not elapsed since the closing of the case; or within the last three years has a record with a financial institution of being refused transactions or a loss of credit.<br/>6. The person has no legal capacity, limited legal capacity, or is placed under assistance by a declaration of a court, which has not yet been voided.<br/>7. The person has been sentenced under the Act or the Futures Trading Act to a penalty of severity equal to or greater than a criminal fine, and 3 years have not elapsed since completion of the sentence, expiration of the suspended sentence, or pardon.<br/>8. The person has been sanctioned by the FSC by dismissal from or replacement in their duties, and 3 years have not yet elapsed.<br/>9. The person has, as supported by facts, engaged in or been involved in other bad faith or improper activities, demonstrating unsuitability to work in the securities industry.<br/>Where the promoter is a juristic person, the provisions of the preceding paragraph shall apply mutatis mutandis to any representative of or any designated individual executing business for the juristic person.
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