Title：Audit Content and Disposition Standards for Securities Subscription Operations of Securities Firms（2000.10.27）
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Categories：
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Market Supervision > Regulation of Securities Firms
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1
┌───────┬───────┬───────┬──────┐
│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. │ │ │ │
└───────┴───────┴───────┴──────┘