|
Article 6-3
|
To trade foreign currency denominated structured bonds with high-asset customers, a securities firm shall establish an appropriate product suitability system, which shall at least include a set of product characteristic assessments, know-your-customer procedures, and customer characteristic assessments, to ascertain whether a product is suitable for trading by a customer.
To conduct the trading under the preceding paragraph, a securities firm shall establish review standards of its product review panel for the launch of products, review procedures, and monitoring and control mechanisms, and submit them to the board of directors for approval. The monitoring and control mechanisms shall include risk identification, measurement, monitoring and control operations, and handling of product investment disputes.
When conducting the trading under paragraph 1, if a product is assessed as high risk, a securities firm shall additionally provide customers with a risk disclosure statement to fully explain and disclose the product's conditions and risks. The securities firm may trade the product with a customer only after the customer fully understands its investment risks and signs the risk disclosure statement.
|