| Article 1 |
These Standards are adopted pursuant to Article 45 of the Taipei Exchange (TPEx) Rules Governing Securities Trading on the TPEx.
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| Article 2 |
A securities firm shall adopt operating procedures for online account opening within its internal control system. When processing such account opening, it shall verify the principal's (customer's) identity and retain relevant identification documentation on file, and shall first complete verification of identity by any of the methods listed below:
- Contact the principal's settlement bank to verify their identity.
- Conduct online identity validation by means of a citizen digital certificate, bank account, or financial chip card.
- Through online transmission of a photograph from which both the national ID card and face are identifiable, together with information on the debit account designated for the relevant customer ledger under the securities firm's settlement account.
- Through verification by video image.
- Through verification by Mobile ID. The relevant compliance directions for identity validation shall be separately prescribed by the TPEx.
- Through verification by Financial Fast Identity Online (FIDO). The relevant identity authentication procedures shall be handled in compliance with the Fast Identity Online Security Control Guidelines for Financial Institutions.
- By other personal identification means.
When the identity is verified pursuant to the preceding paragraph, the securities firm shall additionally send a one-time password (OTP) via SMS (short message service) to the principal's mobile phone ("SMS verification code") or assign a person to make a personal phone call to reinforce validation.
If the securities firm is processing online account opening for a company that is registered under Taiwan's Company Act with 3 or less shareholders, and the company's responsible person and shareholders all are adult natural persons of Taiwan nationality, the securities firm shall perform validation of the identity of the responsible person using the procedures in paragraph 1 and of the company using the Ministry of Economic Affair Certification Authority (MOEACA) Certificate.
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| Article 3 |
A securities firm shall determine the type of account and accordingly assess the principal's single-day trading limit based on the identification procedure used for online account opening and the strength of agreement (see Appendix).
For a type 1 account, the single-day trading limit is restricted to NT$1 million in principle.
For a type 2 account, online identity validation shall be conducted by means of a citizen digital certificate or a bank account, supplemented by a video image identification procedure. Upon submitting proof of the principal's financial resources for a type 2 account, the principal is not subject to the restriction of the trading limit in the preceding paragraph, but instead the securities firm is to assess in its sole discretion the principal's single-day trading limit in scrupulous accordance with the Taiwan Securities Association Self-Regulatory Rules for Know-Your-Customer and Credit Checking and Credit Line Management in the Conduct of Brokerage Trading by Members (the "Self-Regulatory Rules for Credit Checking and Credit Line Management").
For a type 3 account, the securities firm shall agree with the principal that all submitted trading orders will be subject to advance payment or earmarking of funds, with the single-day trading limit being assessed pursuant to the rule for a type 2 account.
When assessing the single-day trading limit for a company that is opening an account online, the securities firm shall follow the procedures in paragraph 1 with respect to the responsible person of the company opening the account.
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| Article 4 |
When a securities firm processes an application by a principle of a type 1 account for adjustment of the maximum single-day trading limit, it shall validate the principal's identity by any of the methods listed below, and may furthermore may consider the actual transaction settlement conditions and risk management policy, and the limit shall be not more than NT$4.99 million in principle; also, when identity validation is conducted by any of the means listed in subparagraphs 2 to 6, the securities firm shall additionally examine documentary proof of the principal's financial resources:
- Conduct validation in person at the counter.
- Conduct online identity validation by means of a citizen digital certificate, supplemented by confirmation by a video image method.
- Verify through the principal's settlement bank that the principal's bank account was opened by a method set out in the two preceding subparagraphs, and have the principal send back the correct SMS verification code from the mobile phone number retained on file with the settlement bank.
- Conduct verification by Mobile ID.
- Conduct online identity validation by means of a bank account (excluding a type 3 digital deposit account opened online).
- Conduct verification by Financial Fast Identity Online (FIDO).
When a securities firm processes a principle's application for adjustment of the maximum single-day trading limit to exceed NT$4.99 million, it shall conduct validation of the principal's identity by any of the methods listed in the preceding paragraph, and scrupulously comply with the Self-Regulatory Rules for Credit Checking and Credit Line Management.
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| Article 5 |
These Standards, and any amendments hereto, shall be publicly announced and implemented following submission to and approval by the competent authority.
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