| Article 2 |
The term "responsible person(s)" in these Regulations shall mean responsible persons as defined in Article 8 of the Company Act or in other laws.
The term "associated person(s)" in these Regulations shall mean person(s) engaged in the following business activities for and on behalf of a futures commission merchant:
1. solicitation, account opening, brokerage order taking, execution, or clearance and settlement in connection with futures trading;
2. proprietary trading, and clearance and settlement, in connection with futures trading;
3. internal auditing related to futures trading; and
4. discretionary futures trading;
5. self-audit or legal compliance in connection with futures trades;
6. in-charge accountant for futures trading;
7. risk management for futures trading;
8. conducting other approved business. |
| Article 3 |
A managerial officer of a futures commission merchant (with the exception of its general manager, and also with the exception of the responsible person of a Republic of China branch office of a foreign futures commission merchant) shall meet one of the following qualifications:
1. has graduated from a domestic or foreign junior college or higher-level educational institution recognized by the Ministry of Education, or has achieved an equivalent level of education, and has three years or more of operational work experience at a securities, futures, financial, or insurance institution(s), with good performance.
2. has four years or more of operational work experience at a futures institution(s), with good performance.
3. has other academic or employment experience sufficient to prove that he/she has professional knowledge and managerial experience in the field of futures, and could soundly and efficiently operate futures commission merchant business. |
| Article 3-1 |
The general manager of a futures commission merchant shall be of upstanding character and possess the ability to effectively lead and manage a futures commission merchant, and shall possess one of the following qualifications (provided that a general manager of a futures commission merchant concurrently operated by a securities firm or banking institution may instead be subject to the requirements set forth by the central competent authority in charge of either of said industries):
1. has graduated from a domestic or foreign junior college or higher-level educational institution recognized by the Ministry of Education, or has achieved an equivalent level of education, has five years or more of operational work experience at a securities, futures, financial, or insurance institution(s), and has served for at least one year as assistant general manager of a securities or futures institution(s) (or in an equivalent position), or has served for at least three years as a manager at a securities or futures institution(s) (or in an equivalent position), with good performance;
2. has worked for at least six years in futures institution(s), and has served for at least one year as assistant general manager of a securities or futures institution(s) (or in an equivalent position), or has served for at least three years as a manager at a securities or futures institution(s) (or in an equivalent position), with good performance;
3. has other academic and employment experience sufficient to prove that he/she has professional knowledge and managerial experience in the field of futures, and could soundly and efficiently operate futures commission merchant business.
Before a futures commission merchant hires a general manager, it shall first submit to the Taiwan Futures Exchange ("TAIFEX") documentary evidence proving that the person it intends to hire possesses one of the qualifications set forth in the preceding paragraph. The person to be hired shall not assume the post until after TAIFEX has issued approval and reported the matter to the Financial Supervisory Commission (FSC) for recordation.
The responsible person of the Republic of China branch office of a foreign futures commission merchant shall possess one of the qualifications set forth in paragraph 1. Documentary evidence proving the person's qualifications shall be submitted in advance to TAIFEX, and the person shall not assume the post until after TAIFEX has issued approval and reported the matter to the FSC for recordation. |
| Article 5 |
An associated person of a futures commission merchant, except for one engaged in the operations specified in Article 2, paragraph 2, subparagraph 6 herein, shall possess one of the following qualifications:
1. has passed an associated person qualification examination administered by the Securities and Futures Institute on behalf of a futures industry association;
2. has passed an associated person qualification examination administered by the competent authority of the home country of a foreign futures exchange announced under Article 5 of the Act, and such qualification to practice is still effective; has at least two years of practical experience, and has been recognized by the FSC.
3. has passed, before implementation of the amendment to these Regulations, an associated person qualification examination held by the FSC or another institution designated by the FSC;
4. has obtained qualifications as a futures analyst in accordance with the Regulations Governing Managed Futures Enterprises.
Those who become qualified associated persons under the preceding paragraph shall be disqualified if they fail to process registration within five years from the issuance date stated in the qualification certificates or if they have departed from work in that capacity for five years or longer.
Those who became qualified associated persons before the implementation of these Regulations shall be disqualified if they fail to process registration within five years from the date of implementation or if they have departed from work in that capacity for five years or longer. |
| Article 7 |
The managerial officer in charge of a futures commission merchant's department involved in brokerage trading, proprietary trading, or settlement and clearing, shall not concurrently act as the managerial officer in charge of risk management, and vice versa.
The following associated persons of a futures commission merchant shall not perform business activities beyond the scope of registration, nor shall such business activities be concurrently performed by other associated persons, provided that where other laws or regulations provide otherwise, such laws and regulations shall govern:
1. persons engaged in brokerage trading and in executing futures transactions;
2. persons engaged in proprietary futures trading; and
3. internal auditors.
In the case of a securities firm that concurrently operates futures business, if any associated person thereof is qualified both as a securities agent and futures associated person, that associated person may simultaneously handle both securities and futures operations that are of the same nature and are within the scope of the operations of account opening, brokerage trading, proprietary trading, clearing and settlement, internal audit, self-audit, legal compliance, risk management, or in-charge accountant operations for which the person is registered.
In the case of a securities firm that concurrently operates futures business, a managerial officer of its department handling securities brokerage trading business, securities proprietary trading business, or securities clearing and settlement business, who furthermore meets the qualifications set out in Articles 3 and 5 herein, may concurrently serve as a managerial officer of its department handling futures business of the same nature.
Except as otherwise provided in the preceding three paragraphs, the associated persons of a futures commission merchant shall be employed on a full-time basis; provided, however, that if other laws and regulations provide otherwise, such laws and regulations shall govern.
Except as otherwise provided by other laws and regulations, the provisions of paragraphs 3 and 4 apply mutatis mutandis to banks concurrently operating futures business. |
| Article 7-1 |
A responsible person of a futures commission merchant may not serve as a responsible person of a bank, financial holding company, trust company, credit cooperative, credit department of a farmers' (fishermen's) association, bills finance company, securities enterprise, insurance enterprise, or another futures enterprise. However, this restriction shall not apply in the following circumstances:
1. Where it is for purposes of an investment relationship between the futures commission merchant and such institutions, and there is no overlapping of the chairmen and/or managerial officers thereof, and the FSC has granted approval.
2. Where it is for purposes of conducting a merger or consolidation, and the FSC has granted approval, a responsible person may serve as the chairman of such an institution.
3. Where a futures commission merchant is a subsidiary of a financial holding company, a responsible person of the futures commission merchant may concurrently serve as a responsible person of such financial holding company or of another of its subsidiaries; provided, that there may not be overlapping of managerial officers between the subsidiaries.
4. Where a futures commission merchant is a juristic-person director or supervisor of a financial holding company, its responsible person, for purposes of serving as a responsible person of that holding company, may concurrently serve as a director or supervisor of a subsidiary of that holding company.
Where there is an investment relationship between a futures commission merchant and an institution other than the ones specified in paragraph 1, no responsible person of the futures commission merchant may concurrently serve as the chairman or a managerial officer of such an investee company.
Any concurrent holding of positions by a responsible person of a futures commission merchant shall be limited to the scope necessary for ensuring the effective execution of the responsible person's duties as such and duties in the concurrently held position, and for maintaining the business operations of the futures commission merchant; it may not involve any conflict of interest or violation of futures regulations or the internal control system, and the rights and interests of shareholders shall be protected. |
| Article 18-1 |
In performing internal audit work, an internal auditor of a futures commission merchant may not do any of the following:
1. Without approval from the FSC, disclose, deliver, or make known any content of the financial examination report, in whole or in any part, to personnel not related to the performance of occupational duties.
2. Issue an untrue internal audit report in connection with internal audit work.
4. Fail to follow the FSC's instructions in conducting audit work or to provide relevant information. |
| Article 20-1 |
A person who was already serving as a general manager of a futures commission merchant or as a responsible person of the Republic of China branch office of a foreign futures commission merchant before the 31 July 2003 amendment to these Regulations may continue serving in that capacity, or for the remainder of any current term, without being subject to requirements set forth in Article 3-1.
A person who was already serving as a general manager, or a managerial officer other than a general manager, of a futures commission merchant, or as a responsible person of the Republic of China branch office of a foreign futures commission merchant before the 11 November 2009 amendment to these Regulations may continue serving in that capacity, or for the remainder of any current term, without being subject to requirements set forth in Articles 3 or 3-1.
Any person referred to in paragraph 1 or 2 who is promoted or appointed to a position referred to in the preceding paragraph after the amendment to these Regulations shall possess the qualifications and meet the requirements set forth in these Regulations, otherwise they shall be discharged. |
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