| Article 1 |
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| Article 2 |
The term "responsible person" as used in these Regulations shall be defined in accordance with Article 8 of the Company Act.
The term "associated persons" as used in these Regulations means persons who engage in the following businesses for a securities firm:
1. Securities investment analysis, internal auditing, or in-charge accountant.
2. Liaison or execution of securities underwriting and trading.
3. Proprietary securities trading, clearing and settlement, or agency for shareholder services.
4. Account opening, credit searches, solicitation, recommendation, brokerage order taking, filing, clearing, settlement, or receipt, payment, and safekeeping of cash and stocks, in connection with securities trading.
5. Margin purchases or short sales in securities trading.
6. Derivatives risk management or operations.
7. Conducting other approved business.
Responsible persons and associated persons of the overseas branch of a securities firm shall abide by the local laws and regulations governing securities in the country where they conduct business. With the exception of Article 12, Article 13, and Article 18, paragraph 1, these Regulations shall not apply. |
| Article 3 |
Associated persons of securities firms are classified into the following two categories in accordance with the complexity and degree of responsibility of their duties:
1. Senior agent: A person who supervises a department or who is a responsible person of a securities firm's branch unit, or is engaged in investment analysis or internal auditing, as described in Article 8, paragraph 1.
2. Agent: A person who engages in underwriting, proprietary trading, or brokerage trading of securities, or who is an internal auditor or an in-charge accountant, as described in the subparagraphs of paragraph 2 of the preceding article.
Only a person who is trained and certified by the internal auditor training program of an institution accredited by the Financial Supervisory Commission (FSC), Executive Yuan may engage in internal auditing as provided in subparagraph 2 of the preceding paragraph. |
| Article 4 |
The associated person of a securities firm shall be in full time work except where the securities firm is concurrently operated by a financial institution, provided that where otherwise provided by the Commission, the above shall not apply.
The following associated persons of a securities firm shall not engage in the business beyond the scope of registration or ask other associated persons to perform on their behalf, unless otherwise prescribed in other laws or regulations:
1.The person who engages in the consigned trading of securities;
2.The person who engages in the dealing of securities;
3.The person who engages in the internal auditing;
The assistant agent of a securities firm shall not engage in or concurrently engage in the business that shall be engaged by a senior agent or an agent. The agent of a securities firm shall not engage in or concurrently engage in the business that shall be engaged by a senior agent. |
| Article 5 |
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| Article 6 |
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| Article 7 |
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| Article 8 |
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| Article 9 |
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| Article 9-1 |
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| Article 10 |
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| Article 11 |
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| Article 11-1 |
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| Article 11-2 |
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| Article 12 |
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| Article 13 |
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| Article 14 |
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| Article 15 |
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| Article 16 |
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| Article 17 |
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| Article 18 |
Responsible persons and associated persons of a securities firm shall conduct business in accordance with the principles of honesty and good faith.
Except where otherwise provided by law or regulation, responsible persons and associated persons of a securities firm may not engage in the following conduct:
1. Engaging in the trading of exchange-listed or OTC-listed stocks with information learned on the job for the purpose of obtaining speculative profit.
2. Disclosing information regarding a customer order or other secrets learned as a result of the job, other than in response to inquiries made in accordance with laws or regulations.
3. Accepting a customer's trading order with discretionary authority over the type, quantity, price, or purchase or sale of the securities.
4. Trading securities with a guarantee to the customer of earning profits or with a promise of sharing profits.
5. Trading securities under an agreement with the customer to jointly assume the losses or profits of the transaction.
6. Accepting orders from customers to buy or sell securities and concurrently buying or selling the same securities for his or her own account on the opposite side of the trade.
7. Subscribing or trading securities in the name of the customer or by using the customer's account.
8. Subscribing or trading securities for the customer in the names of other persons or relatives.
9. Borrowing or lending of money or securities to or from a customer, or acting as an intermediary for the borrowing or lending of money or securities to or from a customer.
10. Fraud, deception, or other misleading behavior when engaging in underwriting, proprietary trading, or brokerage trading of securities.
11. Safekeeping securities, cash, chops, or deposit books of customers, or misappropriating any of those things.
12. Trading securities for a customer that has not entered into a brokerage contract;
13. Trading securities other than in accordance with the particulars and instructions of the order placed by the customer.
14. Providing a customer or unspecified persons with information indicating that the price of certain securities will rise or fall in order to solicit the trading of securities;
15. Recommending trades in specific stocks to unspecified persons, except as necessary for purposes of securities underwriting.
16. Accepting settlement by a customer by means of offsetting a purchase or sale of securities with a sale or purchase of securities of the same type through the same or a different account, provided that this restriction shall not apply to settlement through offsetting loans and securities in margin trading in accordance with laws and regulations.
17. Processing the opening of an account, or the subscription, trading, or settlement of securities, for a director, supervisor, or employee of the company on behalf of another person.
18. Processing the opening of an account for a person other than the principal for whom the account is being opened. However, this rule does not apply if the FSC has provided otherwise.
19. Processing an application for subscription, trading, or settlement of securities from a person who is not the customer or not an agent with a power of attorney from the customer.
20. Accepting a trading order despite being aware that the customer is using undisclosed information of a public company that will have a material impact on the stock price of the company or being aware that the customer intends to manipulate the market.
21. Any agreement between persons engaging in securities underwriting business and an issuing company or its relevant personnel for purposes of obtaining improper profit.
22. Soliciting, acting as an intermediary for, or promoting unapproved securities or derivative products thereof.
23. Other conduct in violation of securities laws or regulations or conduct prohibited by the rules prescribed by the FSC.
Persons referred to in the preceding paragraph also may not engage in any conduct prohibited by securities laws and regulations when conducting their duties.
The provisions of the two preceding paragraphs shall apply mutatis mutandis to other employees of a securities firm. |
| Article 18-1 |
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| Article 19 |
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| Article 20 |
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| Article 21 |
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| Article 22 |
These Regulations shall enter into force from the date of issuance. |