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Article 5
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When applying for provision of the Services, the securities firm shall meet the following conditions and qualification criteria and complete an application form to be submitted, together with other required documents, to the TWSE. If the TWSE determines the securities firm satisfies the qualification standards and the requirements under these Guidelines in its review, it will forward the application to the Competent Authority for approval:
- Type of securities firm: A qualified securities broker;
- Self-owned capital adequacy ratio: The self-owned capital adequacy ratio declared prior to the application shall be more than 150%;
- The most recent financial report audited or reviewed by the CPA shows no accumulated losses and complies with the provisions of Articles 13, 14, 16, 18, 18-1 and 19 of the Rules Governing Securities Firms; and
- Legal compliance:
- Has not been subject to the penalties under Article 66, paragraph 1 of the Securities and Exchange Act or under Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act within the last three months;
- Has not been subject to the penalties under Article 66, paragraph 2 of the Securities and Exchange Act or under Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act within the last six months;
- Has not been subject to an order of suspension of business by the Competent Authority within the most recent year;
- Has not been subject to a decision on withdrawal or revocation of the business license by the Competent Authority within the last two years; and
- Has not been subject to a decision on suspension of or restriction on trading by the TWSE, GTSM or Taiwan Futures Exchange Corporation according to their operating rules or business regulations.
The restrictions under subparagraph 4 of the preceding paragraph may be waived for a securities firm failing to satisfy the conditions therein if its violation of law has been specifically corrected and so acknowledged by the Competent Authority.
A securities firm permitted by the Competent Authority to provide Money Market Fund Investment Services of Securities Firms may not so provide until after it has submitted a photocopy of the approval document issued by the Competent Authority, with the service commencement date stated, to the TWSE three business days in advance.
Personnel of the securities firm performing the Services shall meet the qualification criteria under the Rules Governing Responsible Persons and Associated Persons of Securities Firms, promulgated by the Competent Authority.
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