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Guidelines for handling of reporting of out-trades and account number corrections:
- A securities broker shall only report out-trades and account number corrections based on real errors and shall not have the following circumstances:
- To report an account number correction when an out-trade should have been reported, and vice versa.
- To report out-trades or account number corrections because investors have failed to complete share transfers in accordance with the procedures required for insiders.
- To report out-trades or account number corrections because investors are in violation of the regulations prohibiting sellout during the period of buyback of treasury stock by insiders or interested parties.
- To report out-trades or account number corrections because investors are in violation of the requirements on insider's right of claim for the recovery.
- To avoid regulatory compliance that should be complied with, or to facilitate investors to report inappropriate or false out-trades or account number corrections for their trades not because of an error attributable to the securities broker.
- To report out-trades or account number corrections based on other unreal errors.
- The securities broker shall bear liability for its encroachment on the rights and interest of the investor or for disputes arising out of the reporting and handling of out-trades or account number corrections.
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