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Article NO. Content


Regulations Governing Insiders of Securities Firms Opening Accounts at Their Securities Firms for Securities Brokerage Trading  CH

Amended Date: 2015.07.09 
Categories: Market Supervision > Regulation of Securities Firms
Article 2     "Insiders" of securities firms as used in these Regulations, refers to the following:
  1. Directors, supervisors, and employees of securities firms, provided that for juristic-person directors or supervisors, only the juristic person itself or its representative may be designated as a director or supervisor; where the securities firm is concurrently operated by a financial institution, "employees" refers to those persons employed in the securities department.
  2. Spouses and minor children of the personnel referred to in the preceding subparagraph.
    The insiders referred to in paragraph 1 shall be limited to opening accounts for securities brokerage trading at their own securities firms.
    When an insider of a securities firm conducts any securities brokerage trading at the insider's own securities firm, the securities firm shall, following the execution of a trade, review whether such trade involves undisclosed information or a conflict of interest with the securities firm or other investors requiring recusal, and shall prescribe its review procedures in its internal control system.
    In the case of those operating dealing or underwriting business but not brokerage business, the personnel under paragraph 1, subparagraph 1 may open accounts only at other securities firms designated by the securities firm by which they are employed, and shall be subject to these Regulations.
    An insider of a securities firm may not open an account for securities brokerage trading under the name of any other person.
    No personnel in charge of brokerage trading business may process through accounts opened in their individual name, or accounts opened on behalf of others in accordance with Article 75, paragraph 1, subparagraph 4 of the Operating Rules of the TWSE, any trading orders except electronic trading orders.
    An insider of a securities firm may mandate a securities investment trust enterprise or securities investment consulting enterprise to open an account at a securities firm and conduct discretionary trading, subject to the provisions of these Regulations.