Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Taiwan Stock Exchange Corporation Rules for Administration of Additional Deposits by Securities Firms to the Clearing and Settlement Fund 

Amended Date: 2012.01.11 
Categories: Securities Exchange Market > Clearing and Settlement
Article 2
    The TWSE may, upon a resolution by the Special Management Committee of the Joint Responsibility System Clearing and Settlement Fund (the “Committee”), notify a securities firm to make an additional deposit to the Clearing and Settlement Fund (the “Fund”) if any of the following circumstances occurs to the securities firm:
  1. Irrevocable execution of assets by a court.
  2. Dishonor of any issued negotiable instrument due to insufficient funds, where the record of dishonor thereof has not been canceled.
  3. A substandard rating under the TWSE Operational Rules for Early Warning of Operational Risk of Securities Firms, or consecutive deficits and net worth lower than three-fifths of paid-in capital.
  4. A substandard rating for internal auditing, where improvements still have not been made after repeated guidance and evaluation
  5. Any deficiency in credit review or credit extension operations, where improvements have not been made or are substandard after repeated notices to make improvements.
  6. Any material violation of laws or regulations or TWSE rules or bylaws, where improvements still have not been made after repeated sanctions by the competent authority or the TWSE.
  7. Other material unforeseen event or upon the instructions of the competent authority.
    If any relevant unit of the TWSE finds any circumstance under the preceding paragraph with respect to a securities firm in the course of auditing the business and finances of the securities firm or through the surveillance system, the unit shall submit regular reports to the Committee.
Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw