Title: |
Audit Content and Disposition Standards for Securities Subscription Operations of Securities Firms |
---|---|
Amended Date: | 2000.10.27 |
Categories: |
Market Supervision > Regulation of Securities Firms |
┌───────┬───────┬───────┬──────┐ │Audit Items │Audit Basis │Disposition │Provisions │ │ │ │Standards │with respect│ │ │ │ │to the │ │ │ │ │procedure │ ├───────┼───────┼───────┼──────┤ │1. │Article 57 of │(i) │Shall take │ │ │the Taiwan │Suspend the │effect after│ │(i) Whether or│Securities │businesss │having been │ │not a broker │Association │supervisor │submitted to│ │accepting │Rules │from executing│and approved│ │securities │Governing Un │his or her │by the │ │subscription │derwriting and│duties for a │competent │ │orders from a │Resale of │period of │authority. │ │customer has │Securities by │three months. │Subsequent │ │opened a │Securities │ │amendments │ │special │Firms │(ii) Suspend │thereto │ │securities │ │the business │shall be │ │account with │ │supervisor │effected in │ │the │ │from executing│the same │ │subscriber's │ │his or her │manner. │ │bank. │ │duties for a │ │ │ │ │period of │ │ │(ii) Whether │ │three months. │ │ │or not funds │ │ │ │ │in said │ │ │ │ │account have │ │ │ │ │been used for │ │ │ │ │other │ │ │ │ │purposes. │ │ │ │ ├───────┼───────┼───────┼──────┤ │2. │Article 2, │(i) │ │ │(i) Whether or│paragraph 2 of│Suspend the │ │ │not │The Procedures│businesss │ │ │the securities│Related to the│supervisor │ │ │firm has │Allocation of │from executing│ │ │assigned │Securities by │his or her │ │ │registered │Public Su │duties for a │ │ │qualified │bscription by │period of one │ │ │associated │Securities │month; and │ │ │person to │Firms. │suspend the │ │ │accept │ │unregi │ │ │subscription │ │gistered │ │ │orders from │ │personnel │ │ │customers who │ │handling the │ │ │have opened an│ │subscr │ │ │account. │ │cription from │ │ │ │ │executing his │ │ │(ii) Whether │ │or her duties.│ │ │or not │ │ │ │ │subscription │ │(ii) Suspend │ │ │orders are │ │the business │ │ │serially │ │supervisor │ │ │numbered. │ │from executing│ │ │ │ │his or her │ │ │(iii) Whether │ │duties for a │ │ │or not records│ │period of one │ │ │of online │ │month; and │ │ │subscription │ │suspend the │ │ │orders are │ │personnel │ │ │printed out in│ │handling the │ │ │sequential │ │subscription │ │ │order. Whether│ │from executing│ │ │or not such │ │his or her │ │ │records are │ │duties for a │ │ │kept in the │ │period of │ │ │same manner │ │three months. │ │ │and for the │ │ │ │ │same period as│ │(iii) Suspend │ │ │subscription │ │the business │ │ │orders placed │ │supervisor │ │ │by other │ │from executing│ │ │methods. │ │his or her │ │ │ │ │duties for a │ │ │ │ │period of one │ │ │ │ │month; and │ │ │ │ │suspend the │ │ │ │ │personnel │ │ │ │ │handling the │ │ │ │ │subscription │ │ │ │ │from executing│ │ │ │ │his or her │ │ │ │ │duties for a │ │ │ │ │period of │ │ │ │ │three months. │ │ ├───────┼───────┼───────┼──────┤ │3. Whether or │Article 58 of │(i) │ │ │not the │the Taiwan │Suspend the │ │ │securities │Securities │businesss │ │ │firm accepting│Association │supervisor │ │ │subscription │Rules │from executing│ │ │orders from a │Governing Un │his or her │ │ │subscriber has│derwriting and│duties for a │ │ │verified and │Resale of │period of one │ │ │cancelled │Securities by │month; and │ │ │accepted │Securities │suspend the │ │ │orders if any │Firms and │personnel │ │ │of the │Article 2, │handling the │ │ │following │paragraph 3 of│subscr │ │ │applies │the Taiwan │cription from │ │ │barring the │Securities │executing his │ │ │subscriber │Association │or her duties │ │ │from placing │Operating │for a period │ │ │orders: │Rules of │of three │ │ │ │Public Subsc │months. │ │ │(i) Has not │iption. │ │ │ │opened a │ │(ii) Suspend │ │ │trading │ │the business │ │ │account, │ │supervisor │ │ │electronic │ │from executing│ │ │transfer │ │his or her │ │ │custodial │ │duties for a │ │ │account, or │ │period of one │ │ │central │ │month; and │ │ │depository │ │suspend the │ │ │account with │ │personnel │ │ │the securities│ │handling the │ │ │firm with whom│ │subscription │ │ │it has placed │ │from executing│ │ │subscription │ │his or her │ │ │orders. │ │duties for a │ │ │ │ │period of │ │ │(ii) Has not │ │three months. │ │ │signed a │ │ │ │ │consignment │ │(iii) Suspend │ │ │contract with │ │the business │ │ │the bank │ │supervisor │ │ │designated by │ │from executing│ │ │the securities│ │his or her │ │ │firm regarding│ │duties for a │ │ │debiting of │ │period of one │ │ │funds for │ │month; and │ │ │public │ │suspend the │ │ │subscription. │ │personnel │ │ │ │ │handling the │ │ │(iii) The │ │subscription │ │ │balance in the│ │from executing│ │ │subscriber's │ │his or her │ │ │bank account │ │duties for a │ │ │and account │ │period of │ │ │for payment by│ │three months. │ │ │wire transfer │ │ │ │ │is less than │ │(iv) │ │ │the sum of the│ │(1) Warning to│ │ │subscription │ │ the │ │ │processing │ │ personnel │ │ │fees and │ │ handling │ │ │subscription │ │ the subscr│ │ │payment. │ │ cription │ │ │ │ │ where info│ │ │(iv) Has not │ │ nformation│ │ │filled in │ │ submitted │ │ │fully or │ │ is incompl│ │ │truthfully the│ │ mplete. │ │ │required items│ │(2) Suspend │ │ │in a │ │ the │ │ │subscription │ │ business s│ │ │order (those │ │ supervisor│ │ │placing orders│ │ from │ │ │by telephone │ │ executing │ │ │or on the │ │ his or her│ │ │Internet need │ │ duties for│ │ │neither sign │ │ a period │ │ │nor seal the │ │ of one │ │ │order forms). │ │ month, and│ │ │ │ │ suspend │ │ │(v) Has │ │ the │ │ │accepted │ │ personnel │ │ │orders which a│ │ handling │ │ │subscriber │ │ the subscr│ │ │places in or │ │ cription │ │ │assuming the │ │ from │ │ │name of │ │ executing │ │ │another │ │ his or her│ │ │person. │ │ duties for│ │ │ │ │ a period │ │ │ │ │ of three │ │ │ │ │ months, if│ │ │ │ │ false info│ │ │ │ │ nformation│ │ │ │ │ is submitt│ │ │ │ │ mitted. │ │ │ │ │ │ │ │ │ │(v)Depending │ │ │ │ │ on the │ │ │ │ │ severity of│ │ │ │ │ the vio │ │ │ │ │ violation, │ │ │ │ │ suspend the│ │ │ │ │ subscr │ │ │ │ │ cription │ │ │ │ │ business of│ │ │ │ │ the sec │ │ │ │ │ securities │ │ │ │ │ firm for a │ │ │ │ │ period of │ │ │ │ │ one to two │ │ │ │ │ months and │ │ │ │ │ suspend the│ │ │ │ │ business s │ │ │ │ │ supervisor │ │ │ │ │ and │ │ │ │ │ personnel │ │ │ │ │ handling │ │ │ │ │ the subscr │ │ │ │ │ cription │ │ │ │ │ from │ │ │ │ │ executing │ │ │ │ │ his or her │ │ │ │ │ duties for │ │ │ │ │ a period of│ │ │ │ │ one to │ │ │ │ │ three │ │ │ │ │ months, and│ │ │ │ │ may impose │ │ │ │ │ a more │ │ │ │ │ severe │ │ │ │ │ penalty if │ │ │ │ │ recurrence │ │ │ │ │ of the │ │ │ │ │ above is │ │ │ │ │ found. │ │ ├───────┼───────┼───────┼──────┤ │4. Whether or │Article 70 of │Suspend the │ │ │not after the │the Taiwan │business │ │ │public │Securities │supervisor │ │ │announcement │Association │from executing│ │ │of the lottery│Rules │his or her │ │ │winners, │Governing Un │duties for a │ │ │general │derwriting and│period of │ │ │subscription │Resale of │three months. │ │ │information is│Securities by │ │ │ │kept for 30 │Securities │ │ │ │days and │Firms. │ │ │ │information │ │ │ │ │regarding │ │ │ │ │unqualified │ │ │ │ │cases or │ │ │ │ │lottery │ │ │ │ │winners is │ │ │ │ │kept for 90 │ │ │ │ │days for │ │ │ │ │reference. │ │ │ │ ├───────┼───────┼───────┼──────┤ │5. Whether or │Article 2, │Warning to the│ │ │not the │item 5 of the │business │ │ │securities │Operating │supervisor. │ │ │firm has made │Rules of │ │ │ │available on │Public Subsc │ │ │ │the trading │ription and │ │ │ │floor │Allotment by │ │ │ │information up│Securities │ │ │ │to the │Firms. │ │ │ │previous day │ │ │ │ │on qualified │ │ │ │ │and │ │ │ │ │disqualified │ │ │ │ │subscriptions │ │ │ │ │to subscribers│ │ │ │ │for perusal │ │ │ │ │(consultation)│ │ │ │ │or provided │ │ │ │ │voice or │ │ │ │ │computer │ │ │ │ │inquiry │ │ │ │ │service. │ │ │ │ ├───────┼───────┼───────┼──────┤ │6. A │Article 2, │Suspend the │ │ │securities │item 3 of the │subscription │ │ │firm shall │Operating │business of │ │ │verify whether│Rules of │the securities│ │ │the │Public Subsc │firm until │ │ │corresponding │ription by │such time as │ │ │bank is able │Securities │corrections │ │ │to provide, │Firms │have been │ │ │pursuant to │ │made; suspend │ │ │the │ │the business │ │ │consignment │ │supervisor │ │ │contract │ │from executing│ │ │executed with │ │his or her │ │ │the customer, │ │duties for a │ │ │records │ │period of │ │ │evidencing │ │three months. │ │ │that the │ │ │ │ │subscriber has│ │ │ │ │adequate bank │ │ │ │ │deposits on │ │ │ │ │the day of │ │ │ │ │subscription │ │ │ │ │to cover │ │ │ │ │subscription │ │ │ │ │processing │ │ │ │ │fees and │ │ │ │ │subscription │ │ │ │ │payments. │ │ │ │ └───────┴───────┴───────┴──────┘