|
Article 4
|
A securities firm conducting margin purchase and short sale business shall adopt an internal control system and set up a special unit and appoint associated persons to take care of the business.
The internal control system referred to in paragraph 1 shall state the operational procedures for handling margin purchases and short sales, division of powers and responsibilities, margin account management, and credit investigation of customers.
The supervisors and associated persons of the business referred to in paragraph 1 shall be qualified by undergoing training and examination by an agency recognized by the competent authority, and may concurrently conduct securities business related money lending and securities borrowing and lending business.
|