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Article 37
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Unless otherwise provided by the laws and regulations, a securities firm operating securities business shall not:
- Provide opinion on the rise or drop of the price of securities to induce customers to trade;
- Agree to or provide specified interest or to share losses to induce customers to trade;
- Provide account for customers to subscribe to and/or trade securities;
- Commit false, fraudulent, or other misleading act in providing information of securities to customers;
- Accept general authorization from customers in connection with the type, quantity, price, and purchase or sale of securities;
- Accept settlement of customers who use the same account for offsetting purchase against sale or offsetting sale against purchase of the same type of securities, provided that this restriction does not apply if the requirements of Article 37-1 are met;
- Accept settlement of customers who use different accounts for offsetting purchase against sale or offsetting sale against purchase of the same type of securities;
- Directly or indirectly set up fixed places outside the business premises of the head office or branch office to accept orders for securities trading;
- Directly or indirectly set up fixed places outside the business premises of the head office or branch office to sign brokerage agreements with customers or settle securities transactions; however, this restriction shall not apply where the FSC has provided otherwise;
- Accept securities transactions of a customer who has not signed a brokerage contract;
- Accept the company's director, supervisor, or employee as an agent for others for the account opening, subscription, trade, or settlement of securities;
- Accept from any person other than the customer himself/herself the customer's instructions for account opening; however, this is not applicable for those in accordance with other regulations set by the FSC;
- Accept from any person other than the customer himself/herself or an agent without a power of attorney issued by the customer's instructions for subscription, trade, or settlement.;
- Knowingly accept a trading order from a customer who intends to use an issuer's non-public information which may materially affect the price of its stocks or who intends to manipulate the prices of the market;
- Use the name or account of a customer to subscribe to and/or trade securities;
- Disclose, not in response to inquiries given in accordance with laws and regulations, the contents of orders placed by a customer or other secrets obtained in the course of operation of business;
- Misappropriate the securities or funds owned by a customer or temporarily kept under the custody of the securities firm in the course of business;
- Safekeep the securities, funds, seal, or passbook under its custody for its customers;
- Directly or indirectly provide funds or securities to customers in connection with margin purchases or short sales to effect settlement without the FSC's approval;
- Violate settlement obligation to the securities exchange market;
- Use personnel other than securities firm personnel to solicit business, or pay unreasonable commission; or
- Conduct other acts in violation of laws and regulations governing securities or orders of the FSC on mandatory or unpermitted acts.
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