The TWSE may, upon a resolution by the Special Management Committee of the Joint Responsibility System Clearing and Settlement Fund (the “Committee”), notify a securities firm to make an additional deposit to the Clearing and Settlement Fund (the “Fund”) if any of the following circumstances occurs to the securities firm:
If any relevant unit of the TWSE finds any circumstance under the preceding paragraph with respect to a securities firm in the course of auditing the business and finances of the securities firm or through the surveillance system, the unit shall submit regular reports to the Committee.
- Irrevocable execution of assets by a court.
- Dishonor of any issued negotiable instrument due to insufficient funds, where the record of dishonor thereof has not been canceled.
- A substandard rating under the TWSE Operational Rules for Early Warning of Operational Risk of Securities Firms, or consecutive deficits and net worth lower than three-fifths of paid-in capital.
- A substandard rating for internal auditing, where improvements still have not been made after repeated guidance and evaluation
- Any deficiency in credit review or credit extension operations, where improvements have not been made or are substandard after repeated notices to make improvements.
- Any material violation of laws or regulations or TWSE rules or bylaws, where improvements still have not been made after repeated sanctions by the competent authority or the TWSE.
- Other material unforeseen event or upon the instructions of the competent authority.