Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Taiwan Securities AssociationPassion.Professionalism.Efficiency.Innovation
Annual Report 2011
Taiwan Securities Association6FL., NO. 268, Section 2, Fu-Shin South Rd., Taipei 106, Taiwan
Tel: 886-2-2737-4721 Fax: 886-2-2732-1307
http://www.twsa.org.tw
Taiwan Securities Association
02
06
07
10
14
16
18
20
22
26
CO
NT
EN
TS
Foreword – A Message from the Chairman
I. Introduction
1.Profile
2.PurposeandMission
II. TSA Organization
1.TSAOrganizationChart
2.GeneralAssemblyoftheMembers
3.BoardofDirectors
4.BoardofSupervisors
5.Committees
6.AdministrativeDivisions
III.Reductionofsecuritiesfirms’operatingcost
IV. Upgradingofsecuritiesmarket’soperation
efficiency
V. Expansionofsecuritiesfirms’businesslines
VI.Enhancementofsecuritiesindustry’sself-
disciplinaryfunction
VII.Activeparticipationininternationalevents
VIII.Enhanceinvestmentspecialists’andinvestors’
training
Appendix
FOREWORD
A M
essage from
the Chairm
an
Forsecuritiesfirms, lastyear (2011)wasadifficultyear. In thefirsthalfof2011,
the Fed continued theQuantitative EastingMonetary Policy again and thereby
enrichedthecapital in theworld.Meanwhile, thecapitalwasgreatly investedin the
emergingmarketsinAsia.TheTSECweightedindexstayedat8,000pointsaboveand
theentiresecurities firms’EPSwas$0.60,whichwasconsidered fairperformance.
Notwithstanding,afterthePolicywasliftedinthesecondhalfof2011,the
economyrecoveredsluggishlyintheU.S.A.Meanwhile,uponoutbreak
oftheEuropeanDebtCrisis,theconsumermarketsinEuropeandthe
U.S.A.weredepressedandconsequentlytheeconomyinChinawas
affectedandcouldstayfairandstableonly.TheeconomyinTaiwan
wasdeclininggiventheglobaleconomy,andtherefore, thestock
marketwasdepressedandtheentiresecuritiesfirms’EPSsuffered
lossinTaiwan.
TheyearlyTSECmarketindexdroppedfrom8,972pointsto
7,072points,adecreaseof21.2%.TheGTSMmarket index
droppedfrom143pointsto93points,adecreaseof35.0%.
Thetotalsecuritiesmarket (includingGTSMmarket)value
alsodeclined fromNT$25,790billion toNT$20,640
billion,adecreasebyNT$5,150billion,namely19.97%.
Theyearlyearningsof the total84dedicatedsecurities
firmswereNT$17.153billion,with theaveragedEPS
declining fromNT$1.020 in2010 toNT$0.505. If the
gainsfromsaleofKimEngSecuritiesSingaporebyYuanta
Securitieswereexcluded, theentire securities firms’
earningswouldhavebeenNT$9.593billionwithEPS
NT$0.283.
Compared to local banks,which received the
unprecedentedearnings for thepastdecade,namely
NT$200billionwithROE9.33%, in last year, itwas
reallyadifficultyearforsecuritiesdealers.
> > > > > T a i w a n S e c u r i t i e s A s s o c i a t i o n
I. TheAssociationhasAchievedRemarkableEffectsinHelpingSecuritiesfirmsUpgradeCompetitiveness.
In thepastyear, inorder toupgrade securitiesdealers’competitiveness, theAssociationhas
aimedat thefourmajorobjectives,namelyreductionofsecuritiesdealers’operatingcost,upgrading
of securitiesmarket’soperationefficiency, expansionof securitiesdealers’ business lines and
enhancementofsecuritiesindustry’sself-disciplinaryfunction,andachievedthefollowingeffects:
1. Reduction of securities firms’ operating cost
TheAssociationhasachievedaremarkableeffect inhelpingreducingsecurities firmsoperating
cost.Asa result, the securities firmsareexpected to saveNT$0.9billionperyear.Meanwhile,
securitiesfirmsmayalsorefundtheco-accountabilityclearingandsettlementfundintheamountof
NT$2.4billionapproximatelyinFebruary2012.
(1)Reductionofbrokeragecommissionsandservicefee
(2)ReductionofwarrantTSEC(GTSM)listingfee
(3)Reductionofsecuritiesexchangetaxpaiduponmaturityofwarrants
(4)Reductionofdataprocessingfeeandinformationequipmentutilizationfee
(5)Reductionofcentrallydepositedsecuritieservicechargesforbook-entryoperations
(6)Reductionofprotectionfundsallocationratio
(7)Reductionofco-accountabilitysettlementfundscale
2. Upgrading of securities market's operation efficiency
(1)Define theuniformregulationsgoverningsuspension/resumptionof transactions, irrelevantwith
whetherthesuspension/resumptionoftransactionsinthesecuritiesmarketiscausedbythemarket
stabilitymechanismorfailureintheexchangesystem.
(2)Asecurities firm’s subsidiarymaybeexempt from the restrictionsdefined inArticle45of the
FinancialHoldingCompanyAct,ifitisengagedinsuchfinancialplanningbusinessasexchangeof
stakeholders’stockbymeansoftrust.
(3) Securitiesfirms’e-tradingaccountsmayenterelectronicsignatureintothe“PrimaryListed(OTC)
RiskNotice”inthesamemannerapplicabletothe“WarrantRiskNotice”.
(4) Thechairmanoftheboardofanysecuritiesdealerthatmeetsspecificrequirementswasallowedto
assumethepresidentconcurrently.
(5) Easingtherequirementsaboutidentificationofprofessionalinvestors’qualifications.
> > > > > T a i w a n S e c u r i t i e s A s s o c i a t i o n
(6)Announcingtheamendments totheAssociation’s“SampleSecuritiesFirms’AccountingSystem”to
thepublic.
3. Expansion of securities firms’ business lines
(1) Permit theofferingofknock-outcallwarrants (callablebull)andknock-outputwarrants (bear
contract):OfficiallytradedinTSECandGTSMasofJuly1,2011.
(2) Securitiesfirmsmayengageinwealthmanagementbusinessbymeansoftrusts:Securitiesfirmsmay
engageinwealthmanagementbusinessbymeansof“moneytrusts”and“securities trusts”,andin
thethreetypes,including“non-discretionaryindividualmanagement”,“non-discretionarycollective
management”and“semi-discretionaryindividualmanagementforwhichtheprincipaldesignatesthe
scopeormethodofuse”.
(3) Securities firmsmayplaceorderswith securities firms inMainlandChinadirectlyonbehalfof
professional investors:Securities firmsmayplaceorderswithsecurities firms inMainlandChina
directlytoexchangesecuritiesinMainlandChinaonbehalfoftheprofessionalinvestorsapprovedby
thecompetentauthoritytoinvestsecuritiesinMainlandChina.
(4) Easingthescopeofsecuritiesfirm’tradingsecuritiesforitsownaccount:Includeoffshorestructured
notes,EEBissuedbydomesticlisted(OTC)enterprises,andoffshorecorporatebondwithwarrant.
4. Enhancement of securities industry's self-disciplinary function
(1)Amend theAssociation’s self-disciplinary rules inorder todealwith theFinancialConsumer
ProtectionActresearchedanddraftedbythecompetentauthority.
(2)Amend theRegulationsGoverningSecuritiesFirmsAcceptingOrder toTradeForeignSecurities,
establish the investors'hierarchicalmanagementmechanism, increase thecontrolovermarketing
process,andaddsuchrequirementsforprotectionofinvestors’interestandrightasthe“KnowYour
Products”systemandinformationdisclosure.
(3)RestatethatsecuritiesdealersshallfulfillandunderstandtheKnowYourCustomer(KYC)evaluation
operationandcategorizeinvestorsintoprofessionalornon-professionalones,andsecuritiesdealers
shallbeobligatedtoconductinvestigationwithduediligenceandasktheinvestors forreasonable
andreliableevidencetomeetthesuitabilityofinvestmentobjects.
(4)Adjust the scope and frequencyof the internal audit adequately, research andpropose the
summarizationof suggestionson theexisting internalcontrol systemstandardsand regulations
(includingsecuritiesfirms,futuresdealersandfuturesintroducingbrokers),andaskvarioussecurities
organizations inwriting to take thesuggestions intoconsiderationwhenamending their internal
controlsystemstandardsandregulations.
II. TheAssociationWillWorkHardtoDevelopBusinessforSecuritiesFirmsThis Year.
Thisyear,theAssociationwillstilladheretotheprincipleofservicingourmembers,complywiththe
competentauthority’sguidanceandworkhardtodevelopbusinessforsecuritiesfirms.Iherebypropose
thesevenworkprioritiesandwishtoworkwitheachoneofyoutoachievethesame:
1.Urge securities firms inTaiwan toprocessoutboundsecuritiesbusiness.By referring to the
OffshoreBankingAct,strivefor taxationcredit, freeflowofcapitalandupgradingflexibilityof
operation,andplantheenactmentof“OffshoreSecuritiesBusinessRegulations”.
2.Strive foreasing the restrictionson full-timeassociatedpersonofa securities firm.Without
violating theprinciples forconflictof interestandoperating risk, theassociatedpersonmay
assumeotherfunctionsconcurrentlyiftheypossesstherelevantlicensesand,therefore,itisnot
necessarytosetrestrictionsoneachbusinessline.
3. Promote thecommunicationbetweencross-strait securities firmsandmutuallyapprove the
operation.Broadenthere-consignedportfolioscopeandeasetherestrictionsoninvestment in
MainlandChinabysecuritiesfirms.
4. Workwith thecompetentauthority toproceedwitheffectivecontrol.Respect theprinciple
for“supervisionlocalization”,andtake thesupervisionmeasures imposingstrict requirements
on financeand lenient requirementsonbusinessagainstsecurities firms.Expresslydefine the
scopeofgovernanceby thecompetentauthority,self-disciplinaryorganizationandcorporate
governance.
5. Striveforreductionofsecuritiesexchangetaxforwarranthedgingtradingfrom3/1000to1/1000.
6. Striveforeasingtherestrictionsonsecuritiesfirms’venturecapitalinvestmentandshareholding,
andpermittingsecuritiesfirmstoinvestventurecapitalandadvisorycompanies.
7. Helpsecurities firmsunderstand the lawsandregulationsanddefine therelevant regulations,
inorder todealwith theenforcementofFinancialConsumerProtectionAct,PersonalData
ProtectionActandInternationalFinancialReportingStandardsIFRS.
III SecuritiesMarketWillBringAboutaRadicalChangeThisYear.
2012is theYearof theDragon,or“RenChen”Year. “Ren”meanswaterand“Chen”meansearth.
Meanwhile, theKunHexagramrepresentsMotherNature’snourishingallcreaturesand“SeasonRain
HasFallenEverywhere”.Thatis,variouswalksoflifehaveverygoodchancetodevelopthisyear.Forthe
securitiesmarketinTaiwan,thereischancetobringaboutaradicalchangethisyear. Iherebywishto
workwitheachofyoutoachievethegoalhighlighting"stable-yet-progressiveandmovingonwardand
upward”.Also,Iwishyouhealthyandasuccessfulcareerthisyear.
Chairman
Passion.Professionalism.Efficiency.Innovation
0706 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 0706 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Introduction
1.Profile
(1) TheAssociationwas incorporateduponofficial
approvalof theMinistryof InterioronJanuary26,
1998.A totalof threepreparatorymeetingshave
beenheld fromFebruary toMarch1998,and the
enrollmentofmemberscommencedofficiallyfrom
February27,1998.
(2) TheAssociationcalledthefirstgeneralmeetingof
1st termonApril4,1998, inwhich thedirectors/
supervisorsof 1st term, and theChairmanand
convenerofsupervisors'meeting,wereelected.
(3) TheAssociation consolidatedTaipei Securities
AssociationandKaohsiungSecuritiesAssociation
on July 31, 1999 and December 31, 1999
respectively, and became the only securities
association throughout thenation.ByDecember
31, 2011, theAssociationhas enrolled a total
of 151 securities dealermembers and 1,050
subsidiariesthereof.
2.PurposeandMission
(1) Purpose
1. Protectallinvestors
2. Developnationaleconomy
3. Coordinaterelationswiththesametrade
4. Advancemutualinterest
(2) Mission
1. Exercise the functions toboost the securities
market to copewith thenational economic
planninganddevelopment
2. Communicat ion, invest igat ion, s tat is t ic
consultation,R&Dandreleaseofpublications
related to domestic and foreign securities
businesses
3. Assist in implementing, researching and
proposingmotions about the government
economical policies and the Securities and
ExchangeAct
4. Work together to improve,communicateand
coordinate the issues about promotion of
memberself-discipline
5. Definitionandpreparationofthecommonrules
andregulationsinthesametrade
6. Promotewell-foundedmembers'organization
andthedevelopmentthereof
7. Correctdefectsinmembers'operations
8. Organizethecompetencytrainingandbusiness
seminarforemployeesinthesametrade
9. Organizepublicserviceenterprisesformembers
10.Maintainmembers'legalinterestandrights
11.Disciplinesaboutmembers'non-conformance
withrules
12.Meditationandarbitrationofdisputebetween
members,andmembersandinvestors
13. Enactmentoftheregulationsorfairtraderules
governingmembers'business
14. Request,changeandre-issuanceofmembership
certificates,andotherservices
15. Join internationalsecuritiesorganizationsand
strengthennationaldiplomacy
16. Provideservicescommissionedbyentitiesand
groups
17. Participateinsocialmovements
18.Maintain fairnessof securitiesexchangeand
protectinvestors
19. Prevent fraudulent securities exchange,
marketmanipulation, collection of illegal
servicechargesandfees,andanyotherunjust
enrichment
20.Handle securities specialists' qualification
testingandregistration
21. Performanyotherdeliverablesrequiredunder
lawsorsuggestedbymembers
I
0706 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 TSA Organization
0706 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
TSAOrganization
1. TSA Organization Chart
II
Administrative Division
BrokerageBusinessCommittee
DealingBusinessCommittee
DisciplineCommittee
R&DCommittee
RiskManagementCommittee
Education&TrainingCommittee
FinanceCommittee
InternationalAffairsCommittee
MainlandAffairsCommittee
FinancialFuturesCommittee
BrokerageofForeignSecuritiesCommittee
NewFinancialProductsCommittee
ForeignBrokersCommittee
PublicAffairsCommittee
UnderwritingCommittee
BondMarketCommittee
TaxationandAccountingCommittee
E-CommerceBusinessCommittee
WealthManagementCommittee
ShareholderServiceCommittee
AuditingCommittee
InvestorEducationCommittee
OverseasManagementStrategyCommittee
TenderingCommittee
General Assembly of the Members
Board of Supervisors
Board of Directors
Chairman
Secretary General
Deputy Secretary General
Business Development
Division
Secretariat
Finance Dept.
Information M
anagement D
ept.
Planning Dept.
Business Service D
ept.
Education & Training D
ept.
International Affairs D
ept.
Kaohsiung O
ffice
Passion.Professionalism.Efficiency.Innovation
0908 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 0908 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
2.GeneralAssemblyoftheMembers
TheGeneralAssemblyof theMembers is the supremedecision-makingbodyof theTSA.
MembersoftheAssociationarerequiredtoappointrepresentativestoattendtheGeneralAssembly,
whoshallbereferredas "MemberRepresentatives".Thenumberofmemberrepresentatives for
eachmembershallbedeterminedinaccordancewiththefollowingcriteria:
(1)Membersengagedinunderwritingbusinessshouldappointonememberrepresentative.
(2)Membersengagedinsecuritiesdealingbusinessshouldappointonememberrepresentative.
(3)Membersengagedinsecuritiesbrokeragebusinessshouldappointonememberrepresentative.
(4)Membersengagedintwoorthreeitemsdescribedaboveshouldappointtwoorthreemember
representatives.
Asat31December2009,theTSAhasatotalof275memberrepresentatives.
3.BoardofDirectors
Theboardofdirectors isanexecutiveunitof theAssociation. It isalsoanexecutiveunit
responsibleforplanningandfacilitatingtheoveralloperationoftheAssociation.Atpresent,there
are33directorsinTSA'sboardofdirectors,including11executivedirectorsandachairperson.
4.BoardofSupervisors
TheBoardofSupervisorsisthesupervisingunitoftheAssociation,responsibleforsupervising
and rectifying, if necessary, theoperations and financialmanagement of theAssociation
administeredby theboardofdirectors.TheTSAhas11supervisorsnow, including3executive
supervisorsandachiefsupervisor.
ChairmanDr.Min-JuhHwangsubmittedthe proposal on securities policy toPrimerWuDen-YihattheNorthDistrictDirectors’Seminar2011.
0908 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 TSA Organization
0908 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
5. Committees
TheTSAhasatotalof24committeescurrently,includingbrokeragebusiness,dealingbusiness,
discipline,R&D,education& training, finance, internationalaffairs,mainlandaffairs, financial
futures, new financial products, foreignbrokers, public affairs, underwriting, bondmarket,
brokerageof foreignsecurities, taxationandaccounting, riskmanagement,e-commerce,wealth
management, shareholder service,auditing, investoreducation,overseasmanagement strategy
and tenderingcommittees. Inaccordancewith thearticlesof theAssociation, thecommittees
shallbesupportingunitsof theboardofdirectors, responsible forR&Din thesecuritiesmarket
aswellasrecommendationandintegrationofvariousbusinessproposals,soas toensuresmooth
businessoperationof theAssociation.Also,TSAhasestablishedatenderinggroupresponsible for
thenegotiationofmajorprocurementprojects,aiming toachieveacentralizedcontrolofmajor
expensesandcost-savingfortheAssociation.
6.AdministrativeDivisions
Administrativedivisionsof theAssociationplaykey roles inmanaging theoperationsof the
Association.TheTSA'sadministrativedivisionsaresupervisedbyasecretarygeneralandtwodeputy
secretarygenerals.Therearetwodivisionsundertheirmanagement,respectively,theadministrative
divisionandbusinessdevelopmentdivision.Theadministrativedivisionis furtherdividedintofour
departments, respectively,secretariat, finance, informationmanagementandplanning;while the
businessdevelopmentdivisionconsistsof threedepartments includingbusinessservice,education
andtrainingandinternationalaffairsdepartments.
TheTSA'sKaohsiungoffice takeschargeofall the trainingprograms,membercoordination,
seminarsandforums,aswellasotherrelatedissuesforTSAmembersinthesouthernpartofTaiwan.
TheTurkish CapitalMarketsDay event isheld successfully inTaipeionOctober282011.
1.Reductionofco-accountabilitydelivery(payment)andsettlementfundscale
Inordertoenhancetheoperationandmanagement
efficiency inmarketand to increase thesecurities
firms’capitalutilization, theAssociationsuggested
thecompetentauthority tomodify thecurrentco-
accountabilitydelivery(payment)andsettlementfund
scaleandsystem.Thecompetentauthorityadopted
ourmotionandadjustedthesettlementfund.Thatis,
thefundwasreducedfromNT$8billiontoNT$6.4
billion(NT$3billiontotheTSECandNT$3.4billion
tosecuritiesfirms)intheTSECmarket,fromNT$2.8
billion toNT$2billion inGTSM (NT$0.4billion
toGTSMandNT$1.6billion tosecuritiesdealers).
Upon adjustment, securities firmsmay refund
NT$2.4billion in total (NT$1.6billion to theTSEC
marketandNT$0.8billiontotheGTSMmarket),and
thealternativepolicywas implemented inorder to
dealwiththereductionofsettlementfundscale.
2.Reductionofsecuritiesfirms’brokeragecommissionsandservicecharges
Inorder to reduce securities firms’ operating
cost, theAssociation suggested the competent
authority to reduce the brokerage commissions
and service charges.The competent authority
adoptedourmotion.TheTSECandGTSMreduced
thecharges fromDecember1,2011 respectively.
Reductionofsecuritiesfirms’operatingcost
III
Passion.Professionalism.Efficiency.Innovation
1110 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 1110 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
The As soc i a t i onstaffwashonoredasexcellentworkersbyMinistryof Interiorin2010.
That is, thebrokeragecommissionswere reduced
from0.572/10000of tradingvalue to0.52/10000
of tradingvalue.Theservicechargeswerereduced
from0.65/10000of tradingvalue to0.585/1000of
tradingvalue.Asaresult,securities firmsmaysave
approximatelyNT$0.42billioneachyear.
3. Reductionofprotectionfundsallocationratio
In order to upgrade securities firms’ fund
utilization efficiency and competitiveness, the
Association suggested the competent authority
to reduce the securities firms’ protection funds
allocationratio.Thecompetentauthorityadoptedour
motionandpromulgatedanorderunderArticle18of
theSecurities InvestorandFuturesTraderProtection
ActonSeptember2,2011.Asaresult,thesecurities
firms’protectionfundsallocationratiowasadjusted
fromJuly1,2011toDecember31,2012, reduced
from0.0285/10000oftradingvalueto0.0185/10000
of the trading value, i.e. a decrease byNT$60
million.
4. Reduction of the warrant TSEC (GTSM)listingfee
Inorder to rationalizesecurities firms’warrant
operatingcost forperpetualoperationofwarrants,
theAssociation suggested theTSECandGTSM to
reducethewarrant listingfee.Asaresult, theTSEC
andGTSM reduced thewarrant listing fee from
January26,2011.ThecollectionofwarrantTSEC
(GTSM)listingfeewascategorizedintothreegrades
subject to the total issuedamount.That is, in the
caseof theissuedamountless thanNT$15million,
theannualTSEC(GTSM)listingfeewasNT$80,000;
in thecaseof theissuedamountmorethanNT$15
millionbutlessthanNT$30million,theannualTSEC
(GTSM) listing feewasNT$70,000. In thecaseof
1110 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Reduction of securities firms' operating cost
1110 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
TheAssociationwashonoredas theexcellent groupunderthenational socialgroupandoccupationgroupperformanceassessment o f Minis t ry o fInteriorin2010.
theissuedamountmorethanNT$30million,the
annualTSEC(GTSM)listingfeewasNT$60,000.
Inotherwords, securitiesdealersmaysave the
TSEC (GTSM) listing feebyat leastNT$10,000
foreachfund.Intermsof thetotal15,150funds
issuedby securities firms’underwarrantTSEC
(GTSM)listingfromFebruarytoDecember2011,
thewarrant issuersmaysave theTSEC (GTSM)
listingfeebyNT$0.22billionapproximately.
5. Reduction of securities exchange
taxpaiduponmaturityofwarrants
The competent authori ty modif ied the
nature of call (put)warrant cash settlement
exchangefrom“underlyingsecurities”into“other
marketablesecurities”onOctober4,2011.That
is, thecall (put)warrantholdersmay resell the
same to issuers at the exerciseprice.The re-
definitionofnatureofstockwarrantperformance
cashsettlementexchangeresolvedthecall (put)
warrantperformancecash settlement taxation
issue.When the call (put)warrants issuedby
securities firmsmatures, or areperformedby
meansofcash settlementbeforematurity, it is
not necessary topay the securities exchange
taxequivalent to3/1000of theexerciseprice
ormarket valueof theunderlying stock and,
therefore, the securi t ies f i rms’ operat ing
cost forwarrantsmay be reduced and some
positivebenefitmaybebroughtabout toward
TSAMemberTour toZhangjiajie on Sep3rd 2011.
TSAIncentiveTour toAngkorWaton June30rd 2011.
ChairmanDr.Min-JuhHwangattendedthe36th
IOSCOAGMinCapeTowninSouthAfrica.
Passion.Professionalism.Efficiency.Innovation
1312 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 1312 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
TheTSAdelegationvisitedMilaninOctober2011forsigningtheMOUwithASSOSIM.
thedevelopmentofdomesticwarrantmarket.Warrant issuersmaysave the
securitiesexchangetaxbyNT$34million.
6. Reductionofdataprocessingfeeandinformation
equipmentutilizationfee
TheAssociationnegotiatedwiththeTSECandGTSMforthemotionabout
reductionofdataprocessing feeand informationequipmentutilization fee.
Themotionwasapprovedbythecompetentauthorityandimplementedasof
January1,2012.TSECwillchargethedataprocessingfeeat85%ofthecurrent
rate,andGTSMwillchargetheinformationequipmentutilizationfeeat95%of
thecurrentrate.
1312 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Reduction of securities firms' operating cost
1312 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
1. EasethescopeofutilizationofcollateralsdenominatedinUSDacceptedbysecuritiesfirmsbecauseofborrowedsecurities
Inordertoreducesecuritiesfirms’operatingcost,
theAssociationsuggestedTSECtopermitsecurities
firmshandling securities lending independently
toaccept thecollateralsdenominated inUSDas
offeredbyoverseasChineseandforeignerstosecure
the securities borrowed fromTSEC’s securities
lendingsystem.TheTSECadoptedourmotion,and
themotionwas implementedasofMay3,2011
todealwith theamendment toArticle33of the
TSEC’s“RegulationsGoverningSecuritiesLendingby
SecuritiesFirms”.
2. Easerestrictionsonloansbysecuritiesfirms
Inorder tosaveinvestors fromtroubleinraising
fund,theAssociationsuggestedtheTSECandGTSM
topermit investors tobuy stockonTday, and it
wouldnot be impossible to request loans given
suspensionofmarginpurchaseandshortsaleofthe
stockduetodisposalofthestockispublishedwhen
requesting loan fromsecurities firmsonT+1and
T+2days.ThemotionwasadoptedbytheTSEC,and
publishedandimplementedfromOctober17,2011
inordertodealwiththeamendmentstoArticle13of
the“OperatingRules forSecuritiesBusinessMoney
LendingbySecuritiesFirms”.
3. Strive for deferment of enforcement offundremunerationdisclosuresystem
Fund investmentorganizationswere supposed
toenforce the fundremunerationdisclosuresystem
in accordancewith the “GuidelinesGoverning
Members’ and InvestmentOrganizations’ Fund
Remunerat ion Disclosure" of the Securi t ies
InvestmentTrust&ConsultingAssociationof the
R.O.C.asofMarch3,2011andtoadvise investors
of thefundremunerationcollectedbythempriorto
saleof the funds.Notwithstanding,becausedealers
reflectedthattheyneededtimetoprepareforit,the
Association,TrustAssociationof theR.O.C.andthe
Securities InvestmentTrust&ConsultingAssociation
of theR.O.C. individually suggested deferment
of enforcement of such system.As a result, the
competentauthorityagreed togrant thesix-month
configuration period.During the configuration
period, the investment organizations shall take
preliminaryactionsandposttherangeofrateforthe
fundsontheirofficialwebsites.
4. Identificationofprofessionalinvestors’qualifications
Pursuant to laws, the investorswhomet the
professional investors’qualificationsabout single
investmentmore thanNT$3millionshould invest
morethanNT$3millionineachsingle transaction.
Asa result, itwasdifficult for securities firms to
Upgradingofsecuritiesmarket’soperationefficiency
IV
Passion.Professionalism.Efficiency.Innovation
1514 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 1514 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
complywith the requirementand tradingdispute
arouse frequently. In order to protect investors'
interestandrightandtohelpsecuritiesfirmsprocess
the transactions successfully, theAssociation
proposed amotion.The competent authority
responded toourmotion inwriting, stating that
“thequalification shouldbeheldmet in the first
transaction, and it is notnecessary for investors
to investmore thanNT$3millionper transaction
subsequently, provided that securities dealers
shouldverify that investorshavealreadymet the
requirementsabout investmentofmore thanNT$3
million in each single transactionwithin three
months before the consigned transaction takes
place”.Consequently,themotionwasenforcedasof
September23,2011.
5. Foreignissuers’stockdividendpolicy
Inorder toprotectourTDR investors’ interest
and right, theAssociationadded the requirements
defining that underwriters should evaluate the
certaintyof foreign issuers’ stockdividendpolicies
andverifywhethertheforeignissuershaveallocated
stockdividend in accordancewith their articles
of incorporationand relevant requirements in the
most recent years and, therefore, amended the
Association’s “GuidelinesGoverningNotes in
EvaluationReport ofUnderwriters of Securities
Offeredand IssuedbyForeign Issuers”and“Audit
Procedure inEvaluationReportofUnderwritersof
SecuritiesOfferedand IssuedbyForeign Issuers”.
The amendedprovisionswerepromulgated and
enforcedasofMay20,2011.
6. Amendrequirementsaboutsecuritiesfirms’reinvestment
Inordertooffersecuritiesfirmsmorereasonable
investmentdevelopment chance, theAssociation
suggested amending the requirements about
securities firms’ reinvestment by changing the
calculationbasis for limitof investmentfrom“paid-
incapital” to“netvalue”.Themotionwasadopted
by thecompetentauthority, and theamendments
torequirementsaboutsecuritiesfirms’reinvestment
werepromulgatedonJanuary21,2011.Asaresult,
thecalculationbasisforlimitofinvestmentinsingle
object in19 industries investedbysecurities firms
waseasedandchanged from“paid-incapital” to
“net value”.Meanwhile, the limit of investment
by securities firms in securitiesbankingbusiness,
securities investmentconsultingbusiness,securities
investment trustbusinessand futures trustbusiness
wasalsoraisedfrom10%ofpaid-incapital to20%
ofnetvalue.
TheTSASecretaryGeneral,Mr.Tai-PingChuang,attendedthe24thICSAAGMonMay23and24inLondonUK.
1514 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Upgrading of securities market's operation efficiency
1514 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
Expansionofsecuritiesfirms’businesslines
V
1.Permittheofferingofknock-outcallwarrant(callablebull)andknock-outputwarrant(bearcontract)
The competent authority approved on June
1,2011 that issuersmayoffer theknock-outcall
warrant (callablebull)andknock-outputwarrant
(bearcontract).Therefore,thebearcontracthasbeen
officiallytradedintheTSECandGTSMasofJuly1,
2011,and theportfolio investment in thewarrant
marketofTaiwanbecamemorecomplete, thereby
makinginvestors’operationsmoreflexible.
2.Securitiesfirmsmayengageinfinancialplanningbusinessbymeansof trust
Accordingto the“Directionsfor theConductof
WealthManagementBusinessbySecuritiesFirms”,
TheTSAChairman,Dr.Min-JuhHwang, led theTSAdelegates toattend2011AFIEannualconference inSeoul,Korea.
securities firmsmayengageinwealthmanagement
businessbymeansof“moneytrust”and“securities
trust”,and in the threemanners, including“non-
discretionary individualmanagement”, “non-
discretionary collectivemanaged” and “semi-
discretionary individuallymanagement forwhich
theprincipaldesignates the scopeormethodof
use”.Until theendofDecember2011,a totalof
9securities firmshaverequested tohandlewealth
managementbusinessbymeansof trust,andallof
theirrequestswereapprovedbyFSC,5outof them
wereapprovedbytheCentralBanktohandleforeign
exchangebusiness.FromFebruary2011to theend
of2011, theasset scalehasamounted toNT$2.5
billion.Sincesuchbusinesswasavailable,securities
firms’ business lines have been expanded and,
therefore,securitiesfirms’businessperformancewas
upgraded.
Passion.Professionalism.Efficiency.Innovation
1716 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 1716 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
TheAssociationworkedwithTurkeyCMB andTSPAKB toorganize the“TurkishCapitalMarketsDayinTaiwan”Round-Tablemeeting.
TSAChairman,Dr.Min-JuhHwangattendedthe36th IOSCOAGMinCapeTownin2011.
3. SecuritiesfirmsmayplaceorderwithsecuritiesfirmsinMainlandChinadirectlyonbehalfofprofessionalinstitutionalinvestors
Inorder tosatisfy investors’needsanddevelop
securities firms’ business lines, theAssociation
suggested the competent authority to permit
securities firms to handled consigned foreign
securit ies exchange, so that securit ies f irms
mayengage in exchangeof securities related to
investment byMainlandChina.The competent
authorityissuedainterpretiveorderonFebruary21,
2011stating thatwhenhandlingconsignedforeign
securitiesexchange,securitiesfirmsmayplaceorder
with securities firms inMainlandChinadirectly
on behalf of professional institutional investors
approvedby the industrycompetent authority to
investsecuritiesinMainlandChina,andshallaskthe
FSCforpermissioninaccordancewithArticle7.8of
“RegulationsGoverningApprovalandManagement
ofSecuritiesandFuturesTransactionsandInvestment
BetweentheTaiwanAreaandtheMainlandArea”.
4. Easingthescopeofsecuritiesfirms’exchange of foreign securities
In order to strive for easing the scope of
securitiesdealers’exchangeof foreign securities,
theAssociationsuggested thecompetentauthority
to include offshore structured notes, the Euro
ExchangeableBond(EEB) issuedbydomestic listed
(OTC)enterprises,andoffshorecorporatebondwith
warrantintothescopeofsecuritiesdealers’exchange
offoreignsecurities.Themotionwasadoptedbythe
competentauthority,andpromulgatedandenforced
onSeptember30,2011.
5. Increaseblocktradingportfolioinfuturesmarket
TodealwithTaiwanFuturesExchange’splan to
implementblock tradingsystemthe futuresmarket
inwhichTAIFEX,Mini-Taiex futures andTaiwan
IndexOptiontoprovidetraderswiththeconvenient
channel toprocessblockpositions, theAssociation
suggestedTaiwan Futures Exchange to continue
planning inclusionof stock futurescontracts into
blocktradingportfolios.Themotionwasadoptedby
TaiwanFuturesExchange;therefore,theblocktrading
systemwillgoliveandbepromotedpromptly.
1716 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Expansion of securities firms' business lines
1716 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
1.Workwiththecompetentauthoritytoresearchanddraftthelaws,regulationsanddecreesrelatedtotheFinancialConsumerProtectionAct
The“FinancialConsumerProtectionAct”was
promulgatedandenactedon June29,2011,and
enforcedasofDecember30,2011.TheAssociation
workedwith thecompetentauthority to research
anddraftthelawsrelatedtotheFinancialConsumer
ProtectionAct, such as (1)RequirementsAbout
ScopeofFinancialCapacityorProfessionalExpertise
ofQualified Institutional Investors (Article 4.
License), (2)Regulations forAFinancialServices
EnterpriseHandling inPublishingorBroadcasting
Advertisements or Carrying out Solicitation or
PromotionalActivities (Article 8. License), (3)
RegulationsforFinancialServicesEnterpriseEnsuring
Suitability of Products or Services to Financial
Consumers (Article 9. License), (4) Regulations
for Financial Services Explanationof Important
ContractContents andRiskDisclosure Prior to
SupplyofFinancial InstrumentsorServices (Article
10.License), (5)Regulations forDisputeSettlement
Organizations’CollectionofFeesandFundIncome
&ExpenditureCustodyandManagement(Paragraph
5ofArticle13,andParagraph3.2andParagraph
3.3ofArticle14.License),and (6)Regulations for
EmploymentandDischargeofDisputeSettlement
OrganizationReviewBoardMembersandReview
Procedure(Paragraph2ofArticle18andParagraph
ofArticle23.License).The related lawshavebeen
promulgatedonDecember12,2011andenforcedas
ofDecember30,2011.
2.Amendtheregulationsgoverningsecuritiesfirms’consignmenttradingof foreign securities
Todealwiththeamendmentstothe“Regulations
GoverningSecuritiesFirmsAcceptingOrderstoTrade
Enhancementofsecuritiesindustry’sself-disciplinaryfunction
VI
TSAandASSOSIMcelebratedthesigningoftheMOU.
Passion.Professionalism.Efficiency.Innovation
1918 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 1918 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
ForeignSecurities”promulgatedby thecompetent
authorityonSeptember3,2010, thatestablished
theinvestors'hierarchicalmanagementmechanism,
increased thecontrolovermarketingprocess,and
addedsuchrequirementsforprotectionofinvestors’
interest and right as the “KnowYour Products”
systemand informationdisclosure, theAssociation
alsoamendedits“RegulationsGoverningSecurities
Firms’Consigned Foreign Securities Exchange”,
“Securities Firms’Consigned Foreign Securities
ExchangeOperation Rules” and “Regulations
Governing Securities Firms’ Referral of Foreign
Securities Exchange toCustomers” and revoked
the “Self-DisciplinaryRules for Securities Firms’
ConsignedForeignSecuritiesExchange”.Uponthe
competentauthority’sapproval, saidamendments
andrevocationwereenforcedasofMarch28,2011.
3. RestatethatsecuritiesfirmsshallfulfillandunderstandtheKYCevaluationoperation
In order to fulf i l l securit ies f irms’ “KYC”
evaluationoperation, theAssociation, asper the
competentauthority’s instruction,workedwith the
TSECandGTSMtosendpersonnel toconducton-
site survey on securities firms’ operation of the
sixbusiness lines, includingmarginpurchaseand
short sale,derivative financial instruments, foreign
securities,borrowingofsecurities,securitiesbusiness
moneylending,andemergingstocktradedbyforeign
enterprises(includingcreditinvestigation,KnowYour
ProductsandKnowYourCustomer).TheAssociation
also issued an announcement to eachmember
inDecember2011, restating that securities firms
shouldfulfilltheKYCoperationwithrespecttotheir
business lines;meanwhile, it shouldbenecessary
tocategorized investors intoprofessionalornon-
professionalonesper requirement, and securities
firmsshouldbeobligated toconduct investigation
withduediligenceandaskinvestors forreasonable
and reliableevidence tomeet theadmissibilityof
investmentobjectexchange.
4. Definetheself-disciplinaryregulationsgoverningsecuritiesfirms’handlingoffundbusiness
Perthecompetentauthority’swritteninstruction,
theAssociation researched the pre-launching
reviewmechanism requirements for fund in the
self-disciplinary regulations.Meanwhile, inorder
to fulfill theKYCoperationand fund investment
associatedpersons’orientation training,well-found
theacceptanceof fundremuneration,andprevent
securitiesfirms’remunerationappraisalsystemfrom
beingoriented toward the salevolumeof fund in
whole and thereby causing inadequate sale, the
Associationdraftedthe“Self-DisciplinaryRegulations
Governing Securities firms’Handling of Fund
Business”andsubmitted thedraft to thecompetent
authorityforapproval.
5.PublishthepenaltiesrenderedagainstsecuritiesfirmsandtheirassociatedpersonforviolationsontheAssociation’swebsite
To help outsiders understand the penalty
renderedagainstsecuritiesdealers, theAssociation
willdisclose thepenalties, includingratificationof
misconductor severer, renderedagainst securities
dealersandtheirstaffbythecompetentauthorityon
theAssociation’swebsitefromtimetotime.
1918 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Enhancement of securities industry'sself-disciplinary function
1918 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
The Assoc ia t ion ’s ViceChairman,Kung-LiangYeh,ledthedelegatesconsistingofdirectorsandsupervisorstosigntheMOUwithItalianAssociation of FinancialIntermediaries (ASSOSIM)inMilan,ItalyonOctober4,2011.
Duration Location Meeting
April 17-21 Cape Town, South Africa
The International Organization of Securities Commissions (IOSCO) Annual Assembly of 36th term
May 22-24 London, the United Kingdom
International Council of Securities Associations (ICSA) General Assembly of 24th term
July 31-August 8 London, the United Kingdom Directors and supervisors paid a visit to London Stock Exchange (LSE).
August 18 Taipei A visit was paid by World Federation of Exchanges (WFE).
September 28-30 Osaka, Japan Asian Securities Forum (ASF) of 16th term, 2011
October 2-11 Milan, Italy Sign MOU with Associazione Italiana Intermediari Mobiliari (ASSOSIM)
October 24 Taipei A visit was paid by Japan-based Monext.
October 27-28 Taipei The Association of Capital Market Intermediary Institutions of Turkey (TSPAKB) investment presentation
October 31-November 2 Taipei IOSCO SROCC Workshop & Mid-Year Meeting
November 9-13 Seoul, South Korea Asia Forum of Investor Education (AFIE) of 2nd term
1.Attendanceatinternationalmeetings
Activeparticipationininternationalevents
VII
Passion.Professionalism.Efficiency.Innovation
2120 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 2120 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Duration Location Remark
March26-28 Beijing Attendanceat2011Cross-Strait FinancialWorkshopandBohaiSummitForum
June7 Taipei ReceivedtheIndustrialSecuritiesstudymission
June22 Taipei ReceivedthevisitingSecuritiesAssociationofShandong
July25-August1 Taipei ReceivedthevisitingSecuritiesAssociationofZhejiang
October26 Taipei ReceivedthevisitingSecuritiesAssociationofShanghai
November13-15 Beijing PaidavisittoTaiwanAffairsOfficeoftheStateCouncilPRC,ChinaSecuritiesRegulatoryCommissionandSecuritiesAssociationofChina
2.Cross-straitinterchange
3. TheAssociation is anofficialmemberof such
internationalsecuritiesassociationsas the ICSA,
ASF,IFIE,IOSCOandAFIE,andalsoassumesthe
advisorofAFIE.
4. Since September 26, 2007, theAssociation
has signed anMOUwith the securities self-
disciplinaryassociationsin13countriesincluding
Japan, Korea,Thailand,Vietnam,Mongolia,
Germany,Poland,Australia, Indonesia,Malaysia,
UK,HongKongand Italy.TheAssociationwill
workhard to increase the chance forTaiwan
securities industry toworkwith the securities
industriesinothercountriesthroughthefrequent
regionalorbilateralinterchange.
TheAssociation’sdelegatesconsistingofdirectors/supervisorsheadedforLondon,UKonAugust2,2011topayavisittoLSEandUBSAG.
TSAChairman,Dr.Min-JuhHwang, led thedelegationtoattendthe16thASFAGMinOsakaJapanfromSeptember29toOctober12011.
2120 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Active participation in international events
2120 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
Item No. Special study title Principal Investigator
1.Study on investment development of securities industries in Taiwan and Mainland
China under capital controlProfessor Teh-Ming Hou
2. Study on admission and development of cross-strait securities industries Professor Cheng-Tao Liu
3.Study on double taxation issue about income tax and securities exchange tax
both levied in warrant hedging transactionsProfessor Shih-Ming Lin
4.Study on development trend of business activities of securities companies in
Mainland China
Professor Tsang-Hsiang
Lin
1.Finalizethefollowingspecialstudyreport
Enhanceinvestmentassociatedperson’andinvestors’training
VIII
2. Enhanceinvestors’education
(1) Subsidize college/university departments other
than department of finance to organize the
general knowledge courses about personal
investment and financial planning
A total of 51 teachers have filed a request
from January toDecember2011.Asa result,
22 teacherswereapproveduponexamination
(includingfourteacherssponsoredbyTSEC,and
two teachers sponsoredbyGTSMandTDCC
respectively). 19haveorganized the courses
successfully, and a total of 1,392 students
attendedthegeneralknowledgecourses.
(2) Sponsor the financial planning seminars
organized by university clubs
Sponsor the “Securities Seminarof10th term”
organizedbyNCCUSecuritiesResearchSociety
and“InvestmentandFinancialPlanningWeek”
EventorganizedbyNationalTaipeiUniversity
SecuritiesStudySociety
(3) Attendance at international meetings related to
investment and wealth management education
a. “AFIE conference call”:AttendedbyVice
Chairman of Investment and Financial
PlanningKnowledgeEducationCommittee,
Ching-Tang Huang, on beha l f o f the
AssociationonAugust31,2011.
Passion.Professionalism.Efficiency.Innovation
2322 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 2322 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
b. “AFIE”: ChairmanHuangMing-Chu led
ViceChairmanof Investment andWealth
ManagementKnowledgeEducationCommittee,
Ching-TangHuang,andChiefofInternational
AffairsSection,Bing-ChunHsu,toattendthe
AFIEaorganized inSeoul, SouthKoreaon
November8,2011.
(4) Publication of the investment and wealth
management promotional manual
Inordertostrengtheninvestors’correctinvestment
andwealthmanagementknowledgeandtofound
school students’correct ideaabout investment
and weal th management to upgrade the
Association’s identity infulfillinginvestmentand
wealthmanagementeducation, theAssociation
workedwith thepublicationagency topublish
suchhandbooksas“SecuritiesandI”forgeneral
investorsand“ExplorationofSecuritiesMarket”
for school students (high school faculty and
teachers,anduniversitystudentsotherthanthose
majored in finance”, totaling2,500volumes, in
order tohelp investorsandschoolstudentsget
correctknowledgeandverifypotentialriskabout
securitiesmarket.
3. Businesspromotion
(1) Warrant business
In order to further securi t ies special is ts ’
knowledgeaboutwarrants and toexpand the
trading volume ofwarrants, theAssociation
hasorganized20securitiesassociatedpersons'
warrant training sessions inTaipei,Taoyuan,
Hsinchu,Taichung,Tainan,Chiayi,Changhuaand
KaohsiungfromJuly12toAugust21,2011.The
basicconceptaboutwarrants,warrantinvestment
TSAIncentiveTourtoAngkorWatonJuly16th2011.
2322 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Enhance investment specialists' and investors' training
2322 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
TSAMemberTourtoHolland,BelgiumandFranceonMay18th2011.
strategiesandwarrant investment risk,aswell
ascharacteristicsand transactionsofportfolio
related tocallablebullandbearcontract,were
also introduced in the training sessions.The
securitiesassociatedpersonsnationwidewere
soeager toapply foradmissionto thesessions.
Thequotaoftraineeswasfilledforeachsession,
anda totalof2,000 traineeshaveattended the
sessions.TheAssociationorganizedthesessions
verysuccessfully.
(2) Financial consumer protection
Considering that the “Financial Consumer
ProtectionAct”promulgatedbyExecutiveYuan
andenforcedasofDecember30,2011would
affect the business conducted by securities
dealersandtheirassociatedpersonsorrelations
withcustomers, theAssociationhasorganized
six sessions of toll-free special seminars for
“Introduction and Response to Financial
ConsumerProtectionAct” inTaipei,Taichung
andKaohsiung fromDecember15,2011,and
also invited the delegates from competent
authorities,ChairmanofFinancialOmbudsman
Institution,andprosecutorstoassumetrainersat
theseminars.Meanwhile, inorder topropagate
that securities and financial organizations
should report the relevant information and
fo l low adminis t ra t ive operat ing sys tems
after enforcement of theAct, the Financial
OmbudsmanInstitutionorganizedapresentation
onDecember 27, 2011 and entrusted the
Association toworkwith it to process the
applications for admission and promotional
affairs.Thequotaofeachsessionwasfilled,and
more than800 traineesattended the sessions.
Thepromotionswerecompleted successfully.
Inorder tocontinuehelpingsecuritiesfirmsand
their specialists furtherunderstand theActand
Passion.Professionalism.Efficiency.Innovation
2524 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 2524 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
TSEC,GTSM,TDCCand theAssociationco-organizedthe“Year100HikingAcitvityofSecuritiesMarket”atSishouHills inTaipeionNovember19,2011.
related laws, theAssociationwillplanvarious
trainingprogramsagaintostrengthenpropagation
oftheAct.
4. Communication activities
(1) 2011Securities&FuturesCupGolfTournament:
Thesixentities includingTSEC,TaiwanFutures
Exchange,GTSM,TDCC, ChineseNational
FuturesAssociation and theAssociation co-
organized2011Securities&FuturesCupGolf
TournamentatSunriseGolf&CountryClubon
May1,2011.Atotalof171playersparticipated
intheGame.
(2) SecuritiesCupTableTennisChampionshipGame
of25th term:The fourentities includingTSEC,
GTSM,TDCCand theAssociationorganized
theSecuritiesCupTableTennisChampionship
Gameof25th termat thegymofNationalTaipei
UniversityofEducationonOctober29,2011.A
totalof320playersparticipatedintheGame.
(3) In order to advance increase co-workers’
interactions and promote leisure activities,
the four entities-TSEC,GTSM,TDCCand the
Associationco-organizedthe“Year100Securities
MarketHikingActivity”onNovember19,2011
(at SishouHills inTaipei) andDecember17,
2011(atKaohsiungChungChingLake).A total
of3,700participantsfromcompetentauthorities,
peripheralorganizations, securitiesassociated
firmsstaffsand their familiesattendedtheTour.
Meanwhile, the hiking activity particularly
integratedwithpublicserviceactivitiesthisyear
tourge theassociatedpersons toperformtheir
social responsibilities at their leisure time, in
ordertoupgradethesecuritiesindustry’simage.
2524 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Enhance investment specialists' and investors' training
2524 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
number Securityfirms Income Expense Net Paidupcapital Shareholders’equityProfitincurrent
period(%)EPS(NTD) ROE(%)
Operationrevenue(%)
Networthpershare(NTD)
84 securitiesfirmstotal 444,919 427,766 17,153 339,370 472,230 3.86 0.505 3.63 100.00 13.915
48 General 436,630 421,761 14,869 326,356 446,586 3.41 0.456 3.33 98.14 13.684
36Professionalbrokerage
8,289 6,005 2,284 13,014 25,644 27.56 1.755 8.91 1.86 19.705
66 Localsecuritiesfirms 419,465 406,758 12,707 318,224 429,600 3.03 0.399 2.96 94.28 13.500
34 General 416,550 404,081 12,469 308,580 414,261 2.99 0.404 3.01 93.62 13.425
32Professionalbrokerage
2,915 2,677 238 9,644 15,339 8.16 0.247 1.55 0.66 15.905
17Foreignsecuritiesfirms
25,454 21,008 4,446 21,146 42,630 17.47 2.102 10.43 5.72 20.160
13 General 20,080 17,680 2,400 17,776 32,325 11.95 1.350 7.42 4.51 18.184
4Professionalbrokerage
5,374 3,328 2,046 3,370 10,305 38.08 6.072 19.86 1.21 30.579
20Top20securitiesfirms
399,212 385,205 14,007 278,390 379,238 3.51 0.503 3.69 89.73 13.623
1.Backgrounddescriptions:
TheAssociation consists of 151 corporate
members currently.The income statement only
includes the informationabout incomeof the84
securities firmswhich submitmonthly financial
statements toTSEC from January toDecember in
2011.
2.IMFforecasttheglobaleconomicgrowthrate3.3%in2012.
(1) In the first half of 2011, Fed continued the
QuantitativeEastingMonetaryPolicy(QE2)again
and therebyenriched thecapital in theworld.
Notwithstanding,after theQE2was liftedin the
U.S.A. inthesecondhalfof2011,theeconomy
recoveredsluggishly in theU.S.A.Meanwhile,
uponoutbreakof theEuropeanDebtCrisis, the
consumermarketsinEuropeandtheU.S.A.were
depressed,andconsequently, theeconomy in
Chinawasaffectedandcouldstayfairandstable
only.The IMF forecasted theglobaleconomic
growthrateat3.3%in2012.
(2) In2011, theTSECmarket indexdropped from
8,972points to 7,072points, a decrease by
21.2%.The total securitiesmarket (including
GTSMmarket ) value also decl ined f rom
NT$25,800 billion toNT$20,640 billion, a
decreaseby20.0%.Thedailyaveragedvalue(TSE:
NT$109.3billion/OTC:NT$16.1billion)was
less than that in thesameperiodof2010 (TSE:
NT$115.1billion/OTC:NT$22.4billion).The
Taiwanstockexchangewasalsodecliningdueto
theweakeningdomestic/foreigneconomiesand
theperformancethereofwaspoorin2011.
SecuritiesFirms'IncomeStatment(January–December2011) CurrencyUnit:NTDMillion
Appendix
Passion.Professionalism.Efficiency.Innovation
2726 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report 2726 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
number Securityfirms Income Expense Net Paidupcapital Shareholders’equityProfitincurrent
period(%)EPS(NTD) ROE(%)
Operationrevenue(%)
Networthpershare(NTD)
84 securitiesfirmstotal 444,919 427,766 17,153 339,370 472,230 3.86 0.505 3.63 100.00 13.915
48 General 436,630 421,761 14,869 326,356 446,586 3.41 0.456 3.33 98.14 13.684
36Professionalbrokerage
8,289 6,005 2,284 13,014 25,644 27.56 1.755 8.91 1.86 19.705
66 Localsecuritiesfirms 419,465 406,758 12,707 318,224 429,600 3.03 0.399 2.96 94.28 13.500
34 General 416,550 404,081 12,469 308,580 414,261 2.99 0.404 3.01 93.62 13.425
32Professionalbrokerage
2,915 2,677 238 9,644 15,339 8.16 0.247 1.55 0.66 15.905
17Foreignsecuritiesfirms
25,454 21,008 4,446 21,146 42,630 17.47 2.102 10.43 5.72 20.160
13 General 20,080 17,680 2,400 17,776 32,325 11.95 1.350 7.42 4.51 18.184
4Professionalbrokerage
5,374 3,328 2,046 3,370 10,305 38.08 6.072 19.86 1.21 30.579
20Top20securitiesfirms
399,212 385,205 14,007 278,390 379,238 3.51 0.503 3.69 89.73 13.623
(3) In2011, thewhole84securitiesfirms’averaged
EPSwasNT$+0.505, less thanNT$+1.020 in
2010.50outof the84securities firmsearned
profits, but the remaining34 securities firms
sufferedlosses.Generalsecuritiesfirms’averaged
EPSwasNT$+0.456, less thanNT$+1.755of
theprofessional brokerage firms.The foreign
securities firms’averagedEPSwasNT$+2.102,
more thanNT$+0.399of the local securities
firms.The local securities firmswith capital
ranking top 20 earned the averaged EPS at
NT$+0.503, less than the averaged value
prevailinginthesametrade.
3. In2012,thetargetedeconomicgrowthrateis3.91%inTaiwan:
TheDirectorate-GeneralofBudget,Accounting
CurrencyUnit:NTDMillion
andStatistics,ExecutiveYuanreleasedthedomestic
economicoutlook.TheGDPgrowth rate in2011
was estimated to be 4.03%, reflecting that the
domesticeconomicgrowthwassluggish,butGDP
wasmore thanUS$20,000. TheGDPgrowth rate
in2012wasestimated tobe3.91%only.Thepoor
internationaleconomywouldaffectdomesticexport
andconsumptionconsequently.Notwithstanding,the
economicgrowthratewasexpectedtobeincreasing
quarterbyquarterandtherebywouldbehelpful to
flourish thestockexchange.Taiwanstockexchange
isexpectedtoperformwellinthesecondhalfofthis
year.Securitiesfirmsshallenhancetheirconstitution
andstabilizetheiroperation,andwillbeexpectedto
gainmoreprofit.
2726 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
》 Appendix
2726 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities Association
SecuritiesFirms’IncomeStatementintheRecentTwoYears
ComparisonofSecuritiesFirms’AccumulatedOperatingRevenues
● Entire securi t ies f i rms’ operat ingrevenues:NT$444.919billionin2011,andNT$347.880billionin2010
● Notwithstanding, as ofAugust, theTSE tradingvaluedeclineddue to theinternational trend, and brokeragerevenuewasreduced.
2011 2010
Million
37,570
69,334108,096
143,657
224,298267,148
322,899364,314 385,280
424,191444,919
184,907
138,48339,631
61,734 79,313105,638
157,779 185,940218,854
250,795277,434
307,707347,880
0
100,000
200,000
300,000
400,000
500,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ComparisonofSecuritiesFirms’AccumulatedOperatingProfit/Loss
● Entire securi t ies f i rms’ operat ingincomes:NT$17.153billion in2011,andNT$34.994billionin2010
● Entire securities firms’ averagedEPS:NT$0.50in2011,andNT$1.02in2010
-10,000
0
10,000
20,000
30,000
40,000100年 99年
Million
-852 -840
4,7947,778 7,029 8,232
14,40717,985
23,97226,580
29,84934,994
4,301 4,6237,239
10,542
19,678 20,12324,993 22,018
18,344 20,267 17,884 17,153
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ComparisonofSecuritiesFirms’AccumulatedReturnonShareholdersEquity(ROE)
● Entiresecuritiesdealers’ROE:3.63%in2011,and7.29%in2010
● Thebestsecuritiesdealers’ROEin themost recentyear refers to11.22% in2007.
-2.00
0.00
2.00
4.00
6.00
8.00
10.00 2011 2010
%
0.87 1.462.12
4.05 4.205.17
4.59
3.85 4.24 3.78 3.630.94
-0.19 -0.191.05
1.70 1.54 1.843.18
3.94
5.17 5.656.31
7.29
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ComparisonofSecuritiesFirms’NetValuePerShare
● Entire securi t ies f i rms’ net valueper share:NT$13.92 in 2011, andNT$13.99in2010
● Theentiresecuritiesfirms’netvaluepershareremainedNT$14in2011.
12.00
13.00
14.00
15.00
16.00 2011 2010
Dollar
13.68 13.71 13.70 13.75 13.6413.29 13.40 13.44 13.66 13.72 13.80
13.9914.33 14.34 14.42 14.40 14.55
14.20 14.3114.12 14.01 14.05 13.94
13.92
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Passion.Professionalism.Efficiency.Innovation
PB28 Taiwan Securities Association 2011 Annual ReportTaiwan Securities Association 2011 Annual Report
Taiwan Securities AssociationPassion.Professionalism.Efficiency.Innovation
Annual Report 2011
Taiwan Securities Association6FL., NO. 268, Section 2, Fu-Shin South Rd., Taipei 106, Taiwan
Tel: 886-2-2737-4721 Fax: 886-2-2732-1307
http://www.twsa.org.tw