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Assignment of operations:
- Assignment of operations of securities firms shall be conducted in accordance with the Company Act and other relevant laws and regulations. A report of the assignment shall be submitted to the TWSE, which shall report the same to the competent authority for approval.
- After a securities firm has received approval from the competent authority for assignment of operations, it shall send a letter of notification to the TWSE with related documents attached (as per Attachment 2) for the purpose of announcement 7 business days prior to the designated final business day.
- Where an assignee continues to use an operating venue of the assignor's firm or a branch office of that firm, it shall do so in accordance with the provisions governing branch offices in the Standards Governing the Establishment of Securities Firms or the provisions governing alteration of operating venues in the Regulations Governing Securities Firms.
- Provisions governing handling of the computer linking performance bond under "mergers" above shall be applied mutatis mutandis to handling of the computer linking performance bond of the assignor.
- The computer terminals and trading information facilities originally belonging to the assignor may continue to be used by the assignee at the original operations venue.
- Transaction charges and fees for use of computers and access to information payable by the assignor and its branch offices may be deducted by the TWSE from the funds to be returned by the TWSE.
- Where the assignor files a report of dissolution with the competent authority, the TWSE shall cancel the registration of its directors, supervisors, and managers.
- Where the assignor has not concluded matters relating to default, handling of account errors, margin trading operations or the deposit, withdrawal, or transfer of centralized depository securities, such matters shall be undertaken by the assignee or other securities firm, beginning from the first business day after the date of record of the merger, in accordance with the regulations of the TWSE, the securities finance enterprise, and the Taiwan Depository & Clearing Corporation.
- The assignor shall, on the afternoon of the final day of business, cancel its special error account, and after settlement of all accounts, shall also cancel its ordinary trading accounts opened at other securities brokers.
- Where the assignee continues to use the operating venue of the assignor, and where the agreement for assignment of operating assets provides that the assignee shall succeed to the contracts signed between the assignor and its principals for consignment trading and establishment of centralized securities depository accounts, while also providing that the assignee shall be responsible for seeking the assent of the principals, the assignee shall notify the principals 7 business days prior to the assignor's last day of business; before the assignee may undertake consignment trades, it shall also compile a table of the account numbers of the assignor's principals for their consignment trading accounts, margin trading accounts, and centralized securities depository accounts to be submitted to the TWSE, the securities finance enterprise, and the Taiwan Depository & Clearing Corporation for use in updating computer records. Where a principal expresses objection, or where a principal has not indicated assent to the assignee's succession to the aforesaid contracts within 6 months of commencement of operation of a branch office established by the assignee at the assignor's original venue, and there is no record of trades consigned by the principal, the assignee shall immediately cancel the principal's account and send a letter of notification to the TWSE, provided that given legitimate reasons, the assignee may notify the TWSE by letter and apply for an extension of the above period, such extension to be one time only and for a period of no more than 6 months.
- The assignor shall, before the last day of business, transfer the client funds kept in the settlement accounts to the securities funds book-entry accounts which are opened by the clients for trading in negotiable securities on the stock or over-the-counter market, unless the clients' settlement funds are to be kept in the settlement account of the assignee with the consent of the clients.
- Where the agreement for assignment of operating assets contains provisions that the assignee shall succeed to the consignment contracts and contracts for establishment of centralized securities depository accounts signed between the assignor and its principals, the assignor shall, on the afternoon of its last day of business, transfer all evidentiary documents that law and TWSE regulations require it to keep custody of relating to consignment trading to the custody of the assignee.
- With the exception of fixed assets necessarily retained for operational use, the assignor shall dispose of any real estate and equipment and non-operating real estate that have been assigned to it, in accordance with the regulations of the competent authority.
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