Under any of the following circumstances, the competent authority may deny approval to an application by a futures commission merchant to operate securities introducing broker business:
- The content or information in the application documents is found to contain a misrepresentation.
- The business plan or the internal control system is not concrete enough or cannot be effectively executed.
- Business operations have not been effectively carried out in accordance with internal control systems.
- Any of the circumstances of Article 53 of the SEA applies with respect to a director, supervisor, or a managerial officer that conducts the securities introducing broker business.
- When otherwise deemed necessary to protect the public interest.