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Article 16
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If a collateral manager or collateral custodian has one of the following circumstances, the TWSE may notify the collateral custodian to stop accepting the collateral manager’s instructions on adding new collaterals for custody:
- Incomplete contents or information, or false or untrue information in the application documents.
- Violating these Rules.
- Being prohibited from adding new collaterals for custody in accordance with these Rules as notified by the Competent Authority.
When the collateral manager or collateral custodian has the circumstance in one of the preceding subparagraphs, and if its violation is severe or it fails to make the correction within a period of time requested by a notice, the TWSE may withdraw its registration or application, and may ask the collateral custodian to transfer the collaterals in its custody to another collateral custodian within a specified period of time, or ask the collateral custodian to notify the collateral provider and collateral receiver to return the collaterals.
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