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Article 9
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A securities firm operating fund brokerage business shall, in accordance with Article 38-1 of the Regulations Governing Securities Firms, establish a segregated deposit account with a bank for the collection and payment of customer money. The money in that account shall be kept separate and independent from the securities firm's own assets and may not be used for any other purposes.
A securities firm may not utilize the money referred to in the preceding paragraph except for the purpose of making required payments on behalf of its customer.
A securities firm operating fund brokerage business shall sign a trust agreement with the financial institution with which the segregated deposit account is opened, designate the segregated deposit account as the trust account, and engage the financial institution to manage, utilize, and dispose of the funds in the account in accordance with the trust agreement.
A securities firm operating fund brokerage business, if it fails to do as set out in the preceding paragraph, may not accept money from customers.
A securities firm's creditors may not, to satisfy any debt owed by the securities firm with respect to its own property, make any claim or exercise any other right against money obtained by the securities firm for a customer in connection with business.
The trust agreement signed between the securities firm and the financial institution in accordance with paragraph 3 shall stipulate the following:
- The scope of the management and utilization of the trust property shall be limited to investment in funds as defined in Article 2, paragraph 3 herein or other scope of investment/utilization approved by the TPEx or the competent authority.
- When the trustee financial institution makes payments or transfers money in accordance with the instructions of the securities firm, it shall check the trade data of the securities firm's customer.
- The securities firm agrees that the trustee financial institution shall provide data related to the transactions of the dedicated trust account as required by the competent authority or the TPEx to audit the business of the securities firm.
- If the securities firm suspends operations, terminates its operations, reorganizes, is declared bankrupt, dissolves, has its establishment registration or permit canceled, or is otherwise unable to perform matters in connection with the payment of money, the beneficial rights in the trust shall vest in the customer. The trustee financial institution shall then promptly return the trust property to the customer or transfer it to the new trustee financial institution.
- Except as provided in the preceding subparagraph, the beneficial rights in the trust may not be transferred or pledged.
- Other matters as provided by the TPEx or the competent authority.
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