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Article NO. Content


Directions for the Conduct of Wealth Management Business by Securities Firms  CH

Amended Date: 2022.11.07 
25     When a securities firm conducts wealth management business by means of trusts, the securities firm shall sign a wealth management contract with the customer.
    The content of the contract under the preceding paragraph shall, in addition to meeting the applicable requirements of the Trust Enterprise Act, the Trust Act, and the Regulations Governing the Conclusion of Contract by Trust Enterprises, specify at least the particulars listed below:
  1. Matters that are required by law or regulation to be stipulated in the contracts of any of the products.
  2. The procedures for signing of the contract and the valid period of the contract.
  3. Stipulations concerning the deadlines for settlement of financial instruments, methods for receipt/payment of settlement funds, and matters in connection with currencies, exchange rates and the calculation thereof, and power of attorney for exchange settlement.
  4. Matters in connection with the reporting of changes in customerss' basic information and disclaimers regarding failure to report.
  5. Matters regarding information and services that shall be provided by the securities firm.
  6. The scope of damage arising from causes attributable to the other contracting party, arbitration, and the handling of related matters.
  7. The method for handling damage not attributable to either party to the contract.
  8. The procedures for customers to apply to withdraw funds.
  9. The point in time for the execution of trades. The securities firm shall execute any given trade based on the customer's instructions on that same day, provided that if an agreement with the customer stipulates otherwise, the stipulations thereof shall prevail.
  10. Other necessary content in connection with the rights and obligations of the parties.
  11. Dispute resolution.
    Where a securities firm conducts the types of business as set out in Point 4, paragraph 1, subparagraph 3, if such business involves discretionary investment business, then the content of the contract under paragraph 1 shall also be governed by the Regulations Governing the Conduct of Discretionary Investment Business and other applicable requirements.
    A model contract under paragraph 1 shall be jointly drawn up by the Securities Association and the Trust Association of ROC (hereinafter, the "Trust Association," and reported to the FSC for recordation.