Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Operating Rules for Custody and Investment of Funds by Securities Firms on Behalf of Customers 

Amended Date: 2015.03.31 
Categories: Securities Exchange Market > Borrowing of Money
Article 41
    When a securities firm conducts business relating to custody and investment of funds on behalf of customers, the total amount of the funds handled for custody and investment by the securities firm may not exceed 200% of the securities firm's net worth. Any interest accrued on custodied funds and any income or loss incurred on investment, however, shall not be included in the calculation of the aggregate custody and investment amount.
    The securities firm shall calculate the following information on each business day and transmit the same to the TWSE by the next business day:
  1. The aggregate custody and investment amount described in the preceding paragraph.
  2. Information on the credit rating of the counterparty to a repo transaction as described in Article 27 and on the combined outstanding balance of repo transactions with a single counterparty and the counterparty's net worth as described in Article 28.
  3. The percentage of investment in beneficial certificate units of any single securities investment trust fund to the net asset value of the fund, as described in Article 36.
  4. The percentage of investment in beneficial certificate units of securities investment trust fund(s) offered and issued by any single securities investment trust enterprise to the total amount of invested funds, as described in Article 36.
  5. The percentage of the total investments in quasi-money market funds within the category of bond funds to the total amount of invested funds, as described in Article 36.
  6. The percentage of the securities firm's total combined investments in subject instruments under outright transactions to the total amount of invested funds, as described in Article 40.

Relevant Laws:

Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
twse-regulation.twse.com.tw