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1     These Standards are adopted pursuant to Article 45 of the Taipei Exchange (TPEx) Rules Governing Securities Trading on the TPEx.
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 any of the following third-party authentication procedures or have the principal produce personal identification documentation for verification of identity:
  1. Through verification by the principal's settlement bank.
  2. Through online transmission of citizen digital certificate, bank account, or financial chip card information.
  3. 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.
  4. Through verification by video image.
  5. By other personal identification means.
    When the identity is verified pursuant to the preceding paragraph, the securities firm shall 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 as a follow-up to reinforce validation.
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, an application shall be made with a citizen digital certificate, supplemented by a video image identification procedure. Upon submitting proof of personal financial resources, 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 pursuant to 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.
4     Where the settlement bank validates the principal's identity in either manner below, and where the principal sends back the correct SMS verification code from the mobile phone number retained on file with the settlement bank, the maximum single-day trading limit for a type 1 account is restricted to NT$4.99 million in principle, subject to the actual transaction settlement conditions and risk management policy; however, in the event of any subsequent adjustment to the trading limit, the securities firm may follow the Self-Regulatory Rules for Credit Checking and Credit Line Management, without being subject to the restriction in paragraph 2 of the preceding article if the principal's identity is verified in either manner below:
  1. Conduct validation using a hardware or physical certificate (such as a citizen digital certificate IC card) that conforms to the Electronic Signatures Act, and create a customer video image file.
  2. Conduct validation at the counter.
5     These Standards, and any amendments hereto, shall be publicly announced and implemented following submission to and approval by the competent authority.