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Article NO. Content


Regulations Governing the Operation of Securities Introducing Broker Business by Futures Commission Merchants  CH

Amended Date: 2014.05.29 
Article 23     A securities introducing broker shall enter into a mandate contract with the mandating securities firm, which shall contain the following particulars:
  1. The names of the parties to the contract.
  2. That either party shall notify the other upon receiving a securities investor's complaint.
  3. Provisions for commissions and other relevant fees.
  4. The scope of agency business of the securities introducing broker and the procedures for its execution.
  5. The scope of information and services to be provided by the parties to the contract.
  6. That neither party shall refuse a request of the other party for provision of necessary business and financial information.
  7. That neither party to the contract shall improperly use information obtained from the other party.
  8. That when the securities introducing broker is unable to perform the business, it shall be directly handled by the mandating securities firm.
  9. A method for handling damages attributable to either party to the contract.
  10. A method for handling damages not attributable to either party to the contract.
  11. That the mandating securities firm shall bear joint and several liability if the securities introducing broker is liable for damages caused to a securities investor or any third person resulting from deliberate intent or negligence in performing any type of business under the subparagraphs of Article 3, paragraph 1.
  12. The settlement of trading disputes.
  13. The alteration of contract provisions.
  14. The rescission or termination of the contract.
  15. The effective date of the contract.
  16. Other necessary statements of the parties' rights and obligations.
  17. Other matters required by the competent authority.
    A mandating securities firm may not enter into an agreement in advance with a securities introducing broker to waive the liability referred to in subparagraph 11 of the preceding paragraph.    Any change, rescission, or termination of the mandate contract of paragraph 1 above shall be reported to the competent authority in advance for recordation by.