Regulations Governing the Operation of Futures Introducing Broker Business by Securities Firms Article 13

When a securities firm applies for permission for operation of futures introducing broker business, it may concurrently apply for operation of futures introducing broker business by its branch office.A securities firm which applies for operation of futures introducing broker business by its branch office after commencement of the operation of futures introducing broker business shall meet the following requirements:1. It shall meet the provisions in Article 10;2. It has not been warned by the FSC under subparagraph 1, paragraph 1 of Article 100 of the Act within the most recent three months.3. It has not been sanctioned by the FSC with removal of the responsible person or other persons under subparagraph 2, paragraph 1, Article 100 of the Act, or with the removal of the responsible person from the position held under paragraph 1, Article 101 of the Act in the most recent six months.4. It has not been sanctioned by the FSC with suspension of business in part or in whole under subparagraph 3, paragraph 1, Article 100 of the Act within the most recent one year.5. It has not been sanctioned by the FSC voidance of permission for any part of its business under subparagraph 4, paragraph 1, Article 100 of the Act within the most recent two years.If a securities firm fails to meet any of the requirements set forth in subparagraphs 2 to 5 of the preceding paragraph, but has shown concrete improvement in the circumstances, and the FSC has recognized the improvement, the securities firm may be exempted from the relevant requirement.