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Article 3
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Follow-up, assessment, and guidance with respect to deficiencies in finances and operations:
- When a deficiency in a securities firm's finances or operations is found in an audit, the TSEC may dispatch personnel to provide on-site guidance as it deems necessary in view of the seriousness of the deficiency.
- From the date a securities firm receives a letter of disposition from the competent authority or the TSEC, it shall compile a report on its corrective and preventive measures with respect to the deficiencies found. It shall also list those deficiencies as additional auditing items for daily tracking by its internal auditing department for the next 10 successive business days and prepare a respective comprehensive auditing report, to include an audit statement, an itemized audit report, and audit working papers, to be presented with the aforementioned report to the competent authority for recordation. When the deficiencies involve centralized custody operations, the Taiwan
- The TSEC shall review the report of the preceding subparagraph, submitted by letter by the securities firm, and gain an understanding of the firm's corrections in regard to the deficiencies. When any matter has not been carried out in accordance with the preceding subparagraph or has not been reported fully and accurately, the TSEC shall dispatch personnel to conduct on-site guidance.
- When a deficiency in finances or operations of a securities firm is serious and when a related targeted examination is already being performed, guidance of the securities firm shall be performed in accordance with the Regulations Governing Targeted Examinations of and Guidance to Securities Firms.
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