Article Content
Chapter 3 Trust Personnel Rules
| Article 15 | The personnel allocation of a trust enterprise conducting collective trust fund business shall observe the principles of segregation of duties and checks and balances. |
| Article 16 | Personnel that possess decision-making power over utilization of a collective trust fund may not concurrently hold other positions. |
| Article 17 | Every collective trust fund shall appoint at least one employee with decision-making power to take charge of the utilization and management of collective trust fund assets on a full-time basis.
The person with decision-making power over the utilization of the collective trust fund shall, in addition to possessing the required trust-related professional knowledge and experience as prescribed by the competent authority pursuant to Paragraph 4, Article 24 of the Act, possess at least one of the following relevant qualifications and work experiences based on the utilization purpose and scope set out in the collective trust fund offering plan:
1. Three or more years of work experience at a financial institution in investment or asset management related to the scope of fund utilization.
2. Three or more years of experience in utilizing and managing collective investments or discretionary investments.
3. Having obtained the credential of securities investment analyst in Taiwan or overseas, or senior securities specialist in Taiwan, and three or more years of work experience in the position of securities analyst or investment strategist at a professional institution.
4. Other qualifications and work experience relating to the scope of fund utilization which are reported to and approved by the Trust Association in advance. |
| Article 18 | Directors and supervisors of a trust enterprise and personnel operating and managing its collective trust fund business shall not engage any of the following:
1. Conduct that constitutes violation of Article 23, 25, or 27 of the Act.
2. Conduct that constitutes violation of the purpose of the trust, or improper disposal or embezzlement of trust assets.
3. Conduct that constitutes violation of their statutory or agreed-upon obligation of confidentiality by disclosing information obtained in the performance of job duties to others, except in response to inquiries made pursuant to laws and regulations.
4. When investing a collective trust fund in an investment target as set out in these Regulations, simultaneously buying or selling that investment target for their own benefit or that of a third party.
5. Engaging in misrepresentative, fraudulent, or other misleading publicity or business promotion activities.
6. Agreeing to provide any specified benefit or consideration, or to bear losses, in order to promote a collective trust fund.
7. Collecting a kickback, commission rebate, or other benefits from those with whom they have a business relationship, or from a customer.
8. Collecting monetary or other benefits in return for the transfer of a shareholder proxy form or the exercise of voting right relating to a collective trust fund.
9. When utilizing a collective trust fund to engage in securities transactions, engaging in activities with the intention to raise or lower the trading price of certain securities on the centralized securities exchange market, or engaging in other conduct detrimental to the rights and interests of the beneficiaries.
10. Violating their duties by handling affairs with the intent to gain illegal benefit for themselves or a third party, or so as to harm the rights or interests of beneficiaries.
11. When investing a collective trust fund in an investment target as set out in these Regulations, switching an already completed transactions from the fund account to their own or a third party's account, or from their own or a third party's account to the fund account.
12. Other matters prohibited by laws or regulations or the competent authority.
A trust enterprise that discovers any violation of the preceding paragraph shall take appropriate actions and hold those personnel involved accountable, and report the names of any persons who are disciplined, dismissed, or relieved of their duties to the competent authority for recordation, with a copy sent to the Trust Association
Where a director or supervisor of a trust enterprise is a juristic person, the two preceding paragraphs shall apply mutatis mutandis to its representative or designated representative performing duties on its behalf. |