Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Operation Directions for Agency Services Operated by Securities Firms Engaged by Customers to Invest Their Securities Trading Balances 

Amended Date: 2015.03.31 
Categories: Securities Exchange Market > Borrowing of Money
Article 6
    The securities firm which operates the Services shall sign a letter of authorization with the customer, the investment trust and the bank or the trader in the repo transaction of government bonds, before its acceptance of such engagement.
    The letter of authorization stipulated in the above paragraph shall stipulate the following terms:
  1. The investment object for which the funds are utilized.
  2. No investment judgment may be involved in the execution by the securities firm according to the contract of a fund transfer instruction from the costumer; the risk and benefit from the utilization of the funds shall be afforded and enjoyed by the customer itself. The securities firm may not agree on the allocation of profit and loss in the investment of the funds with the customer.
  3. The investment objects, investment amounts, investment sequences and the order in which funds are to be utilized, as specified by the customer in advance.
  4. Matters authorized by the customer as in Article 10, Paragraph 3 and Article 11, Paragraph 1.
  5. The investment period in which the securities firm conducts repo transactions of government bonds on behalf of the customer.
  6. The securities firm conducting repo transactions of government bonds with its own dealing position with the customer shall obtain written consent from the investor by way of a special agreement and disclose to the customer the average interest rate of the repurchase agreement at the trading day attached to the business department announced by the GTSM, before the end of the month following the trading day.
  7. Where a securities firm conducts repo transactions of government bonds or invest in money market funds and bond funds - quasi-money market funds on behalf of the customer, any request by the customer for early rescission, repurchase or conversion must be made only to the securities firm, and the securities firm shall keep the related records.
  8. Where a securities firm operates agency services for the customer to engage in repo transactions of government bonds or invest in money market funds and bond funds - quasi-s money market funds, the payments for the repo transactions of government bonds and the repurchase of the fund shall be first transferred to the securities firm's settlement account, and the securities firm shall remit to the savings account of the customer with the financial institutions appointed by the securities broker, on the same day after paying the settlement funds.
  9. The securities firm shall preserve records of the customer's trading in money market funds or bond funds - quasi-money market funds and the bond passbooks or certifcate of conditional trading of the objects of repo transactions of government bonds.
  10. The trade confirmation slips, delivery statements, settlement statements, bond passbooks or certifcates of conditional trading shall be monthly compiled and delivered to the customer by the securities firm conducting repo transactions of government bonds on behalf of the customer.
  11. The agreement on service fees between the securities firm and the customer.
  12. The effective period and period of validity of the contract and terms to deal with the modification and termination of the contract.
  13. Dispute resolution.
    The template of the letter of authorization in the first paragraph will be prepared by the Taiwan Securities Association.
Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw