| Organisation |
| Organisation |
Order of the Financial Supervisory Commission |
| Issue No. |
| Issue No. |
Financial-Supervisory-Securities-Firms 11103836464CH
|
| Issue Date |
| Issue Date |
2022/09/05 |
| Content |
| Content |
Public Announcement of the Financial Supervisory Commission
Issue date: 5 September 2022
Issue no.: Financial-Supervisory-Securities-Firms-11103836464
- Pursuant to Article 38, paragraph 2, it is provided that a securities firm may, with a customer's consent, use funds retained in the customer ledger of the securities firm's settlement account to purchase Taiwan government bonds or treasury bills, or transfer to other banks as time deposits any portion exceeding NT$1 billion of the funds retained in time deposit in the customer ledger of that settlement account.
- The amount of the funds in a settlement account customer ledger that the securities firm deposits in a bank deposit account may not be less than 20 percent of the total amount of the funds in that settlement account customer ledger. The remainder of the funds may be used as described in the preceding point. With respect to the uses set out in the preceding point, the securities firm shall adopt operation procedures expressly providing relevant control measures, and shall assign dedicated personnel to perform control operations with respect to the liquidity and security of the settlement account customer ledgers and the uses of the funds thereof.
- If a securities firm uses a customer ledger under the settlement account to purchase Taiwan government bonds or Treasury bills, it shall comply with the following provisions:
- The securities firm shall on a daily basis make accurate itemized entries of each transaction using funds of the customer ledger, including receipts and payments involved in purchase and sale transactions, and retain the records and receipt and payment documents.
- The securities firm shall on a daily basis use the existing reporting mechanism for settlement account customer ledgers to report to the Taiwan Stock Exchange Corporation (TWSE) the itemized information on the use of settlement account customer ledgers in investments in financial products.
- The transaction funds used by a securities firm for purchase of Taiwan government bonds and treasury bonds may not be withdrawn in cash. The purchases shall be done by means of account transfer, and purchase and sale transactions shall be done in the name of the "___ Securities Firm Customer Ledger Settlement Account." The purchased government bonds and treasury bills shall be separately deposited in a special account and kept separate and independent from the securities firm's own assets.
- The securities firm shall on a monthly basis discloses to customers the status of use of funds of the settlement account customer ledgers, and shall fully disclose in its financial reports the funds of the settlement account customer ledgers and the status of use thereof.
- In the contract for the retention of customer funds in the settlement account, the securities firm shall specify the method for handling matters in connection with use of the funds, including interest, profit, and loss deriving from use and the management fee rates.
- If a securities firm transfers to other banks as time deposits any portion exceeding NT$1 billion of the funds retained in time deposit in a customer ledger of the settlement account, it shall comply with the following provisions:
- The bank deposit account from which funds are transferred shall be named the "___ Securities Firm Customer Ledger Settlement Account," and it shall be kept separate and independent from the securities firm's own assets, and no cash withdrawal may be made from that settlement Account. Transfers of funds from that settlement Account shall be done by means of account transfer, and no overdraft, creation of pledge, or exercise of other rights in respect of that settlement account is permitted.
- Time deposits of funds transferred from the settlement account may be rescinded at any time. All such funds may only be transferred by account transfer back to the original settlement account under which the securities firm conducts customer ledger operations, and the funds may not be used in any other manner.
- The accounts and account numbers involved in account transfers under the preceding two subparagraphs shall be reported to the TWSE by letter in advance; in the event of any change therein, such change also shall immediately be reported. The securities firm shall keep detailed records of the time deposits into which funds are transferred and prepare itemized statements thereof daily.
- The use of securities firm settlement account customer ledger funds also shall be handled in compliance with the TWSE Guidelines Governing the Creation of Customer Ledgers of Securities Firms' Settlement Accounts.
- This Order is effective from this day forward.
|
|
|