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Article 3-1
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The term "high-asset customer" as used herein means a juristic person or natural person meeting all of the following conditions and having filed an application in writing with a securities firm to become a high-asset customer:
- The customer provides proof of financial capacity demonstrating a net value of investable assets and/or value of insurance products equivalent to NT$100 million or above; or has a net value of investable assets with the securities firm equivalent to NT$30 million or above and provides a statement of financial capacity declaring a holding of a net value of investable assets and/or value of insurance products equivalent to NT$100 million or above.
- The securities firm confirms that the natural person or the person(s) authorized by the juristic person to conduct trades possesses adequate professional knowledge and trading experience with respect to financial products and confirms that the natural person or juristic person has adequate risk-bearing capacity.
- The customer fully understands that the securities firm may be exempted from liabilities for providing financial products or services to high-asset customers and to natural person or juristic person professional investors or natural person or juristic person professional customers under relevant laws and regulations, and agrees to sign on as a high-asset customer.
As used in the preceding paragraph, the term "investable assets" means financial assets such as cash deposits, domestic or foreign securities or short-term bills (including bonds or short-term bills purchased through RP/RS transactions), structured products, and gold passbooks. The term "net value" means the amount of the customer's investment principal after deducting the amount of collateralized financing or pledged loans. If a financial asset has an open market price or reference price, the net value shall be calculated as the amount of its value measured at its market price or reference price after deducting the amount of collateralized financing or pledged loans. The term "value of insurance products" means the policy value of investment-linked insurance or non-forfeiture value of non-investment-linked life insurance.
A customer that already has the status of a natural person or juristic person professional investor, or of a natural person or juristic person professional customer under the Taipei Exchange Regulations Governing Over-the-Counter Trading of Financial Derivatives by Securities Firms, and that meets either of the conditions of paragraph 1, subparagraph 1 and is confirmed by the securities firm as having adequate risk-bearing capacity may file an application in writing with the securities firm to become a high-asset customer.
With respect to the eligibility requirements that shall be met by high-asset customers, a securities firm shall fulfill its responsibility for due diligence and obtain reasonable and credible supporting evidence from a customer and conduct review and grant approval in accordance with its know-your-customer procedures and customer acceptance criteria.
A natural person or juristic person having the status as a high-asset customer under paragraph 1 or 3 shall be deemed to have the status of a natural person or juristic person professional investor under relevant laws or regulations governing the financial products or services provided by the securities firm. However, when a securities firm undertakes financial derivatives transactions with a high-asset customer, the customer shall meet the eligibility requirements for professional customers and counterparty restrictions prescribed by the Financial Supervisory Commission (FSC) or the Central Bank of the Republic of China (Taiwan) (the "Central Bank") in regulations governing securities firms conducting financial derivatives business.
The securities firm shall carry out follow-up review at least once every 2 years in accordance with the adopted follow-up review procedures to ensure that a given customer continues to meet the eligibility requirements for high-asset customers. The securities firm shall regularly evaluate the net value of investable assets the customer has with it. If the securities firm discovers that the customer's net value of investable assets is below the standards of financial capacity required for high-asset customers, it shall obtain the customer's written confirmation on whether the customer wishes it to continue to provide additional financial products or services applicable for high-asset customers.
A high-asset customer may file an application in writing with the securities firm to terminate the customer's status as a high-asset customer.
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