When a SICE accepts a mandate from a customer, it shall fully understand and assess the customer's investment knowledge and experience, financial condition, and degree of risk tolerance.
When accepting a mandate from a customer and providing analytical opinions or recommendations on securities investment or trading matters, a SICE shall produce a written securities investment consulting contract stipulating the rights and obligations of both parties.
The securities investment consulting contract referred to in the preceding paragraph shall state the following:
1.The names and addresses of the parties to the contract.
2.The rights, obligations, and legal liability of the parties to the contract.
3.The scope of analytical opinions and recommendations provided by the SICE.
4.The methods by which the SICE provides its services.
5.The amount of remuneration and fees to be paid by the customer and the method of their calculation and payment.
6.The SICE's confidentiality obligations in respect of information on customer assets or other personal customer information that it gains as a result of the mandate relationship.
7.The customer's obligation not to divulge the analytical opinions or recommendations of the SICE to any third party except with the consent of the SICE.
8.The SICE's obligation to not accept funds from a customer or act as the customer's agent in securities investment activities, and to not stipulate the sharing of any securities investment profits or losses with a customer.
9.Matters pertaining to amendment or termination of the contract.
10.The date on which the contract takes effect and its duration.
11.The customer's right to terminate the contract with written notice within 7 days from the date of receipt of the contract.
12.The fee refund rate that the customer may seek upon termination of the contract, and the means of refund.
13.The means of resolving disputes and the court of jurisdiction.
14.Other matters with a bearing on the interests of contracting parties as prescribed by FSC regulation.
When a contract is terminated as provided in subparagraph 11 of the preceding paragraph, the SICE may seek remuneration from the customer commensurate with the services provided prior to termination, provided that it may not additionally claim for damages arising from termination or for penalty for breach of contract.
A template for the securities investment consulting contract shall be adopted by the SITCA and its use implemented after submission for approval by the FSC; the same shall apply for any amendment thereto.

When a SICE provides securities investment analyses and recommendations, it shall draft a report on its investment analysis specifying the sound analytical basis and source data used.
A copy and a record of the report referred to in the preceding paragraph shall be kept on file for a period of 5 years from the date of its provision, and may be kept in electronic form.
A SICE that enters into a securities investment consulting contract as provided in the preceding article shall keep the contract on file for a period of 5 years after the extinguishment of the contractual rights and obligations thereunder.
A SICE that provides an investment analysis through any broadcast media shall retain a video and audio recording of the program for a period of not less than 1 year.

A SICE may not use exaggerated or biased representations in advertising, public information meetings, or other promotional activities.
A SICE shall report any advertising, public information meeting, or other promotional activity to the SITCA within 10 days of its occurrence. When the SITCA discovers the circumstances under Article 14, paragraph 1, it shall file a written report with the FSC before the end of each month detailing the circumstances.
Any promotional or advertising materials and related records produced in connection with the advertising, public information meetings, or other promotional activities given in paragraph 1 shall be retained for a period of 2 years; the records for informational meetings and other business promotion activities shall be preserved through video and audio recordings for a period of not less than 1 year.
The FSC may at any time conduct a spot check of records relating to the SICE's advertising, promotional materials, or video and audio recordings; the SICE may not refuse or impede such a check.

A SICE shall operate in accordance with the Act, any orders issued pursuant to the Act, and contractual stipulations, acting with the care of a good administrator and exercising its fiduciary duty in accordance with principles of good faith and credit.
Except where law or regulation provide otherwise, a SICE as referred to in the preceding paragraph may not engage in the following conduct:
1.Using fraud, coercion, or other improper means in connection with the signing of mandate contracts.
2.Acting as agent for others in securities investment or securities-related commodity trading activities.
3.Stipulating that gains or losses from securities investments will be shared with a customer.
4.Making trades in the same securities as those recommended to an investor by the SICE, provided that this shall not apply to securities investment trust funds and offshore funds.
5.Engaging in false or deceptive conduct, rude invective, or other conduct contrary to facts or sufficient to cause misplaced trust.
6.Engaging in borrowing or lending of funds or securities with a customer, or acting as intermediary in such a transaction.
7.Keeping custody of or misappropriating a customer's securities, funds, personal stamp, or passbook.
8.Attempting to seek gain for oneself, another customer, or a third party through the use of investment analyses or recommendations, publications issued, or lectures given for a customer.
9.Divulging a matter entrusted by a customer or a secret learned while performing its duties, except in answer to an inquiry undertaken in accordance with the law.
10.Consenting to or tacitly allowing others to use the company name or an associated person's name in doing business.
11.Transmission by any means of a message to a customer containing trading recommendations lacking a sound analytical basis or source.
12.Making forecasts of the future price of a specific security or making trading recommendations regarding a specific security to unspecified persons, in a public venue or in a broadcast media other than radio or television, without providing an analytical basis.
13.Producing and broadcasting, or engaging others to produce and broadcast, securities investment analysis programs, with someone other than an employee of the SICE acting as program host.
14.Performing investment analyses for a customer by means of divination or an appeal to spirits.
15.Encouraging or inducing others through writing, pictures, speech, or any other method to refuse performance of securities trading settlement obligations, to assemble and protest, or engage in other acts that would disturb the order of the securities markets.
16.Using non-professional personnel to solicit customers, or requesting the payment of unreasonable commissions.
17.Conducting securities investment analysis activities or other business activities under a non-registered name.
18.Making a donation of securities investment consulting services.
19.Operating business at a non-registered place of business.
20.Entering into an agreement with any other person to share the profits and operating expenses, and to participate in the operation of the securities investment consulting business under the name of the company or of an employee.
21.Any other conduct in contravention of securities and futures laws and regulations or prohibited by FSC regulations.
Except where other laws or FSC regulations so provide, a SICE as referred to in paragraph 1 shall maintain the confidentiality of information on customers, their trading histories, and other related information.
A SICE shall adopt and implement rules governing the administration of internal personnel in accordance with SITCA regulations.

A SICE may not engage in the following types of conduct in advertising, public information meetings, or other promotional activities:
1.Providing programs on securities investment analysis through broadcast media in contravention of any provisions of the preceding article.
2.Using deception or other improper means to induce an investor to participate in a securities investment analysis activity for the purpose of soliciting customers.
3.Making unsubstantiated advertising claims that the effectiveness, content, or methods of its own securities investment analyses are superior to those of others.
4.Revealing in advertising only matters advantageous to the SICE, or other types of exaggerated presentation of content.
5.Using advertising that will cause a mistaken belief that the SICE engages in discretionary trading when the SICE has not received approval for such trading.
6.Making representations guaranteeing that investments will be profitable or that the SICE will bear losses.
7.Engaging in advertising to solicit customers while undertaking investment analyses in the broadcast media.
8.Engaging in conduct involving conflicts of interest, fraud, misrepresentation, or the intent to influence market prices.
9.Conduct involving forecasts of the future price of a specific security.
10.Making recommendations or soliciting non-specified persons to trade in a specific security over radio or television during the trading hours of the centralized securities exchange market or over-the-counter market, or within one hour before or after trading hours.
11.Using radio or television at any time outside the period prescribed in the preceding subparagraph to provide analytical opinions to non-specified persons on the industry or on the operations or finances of a specific company connected with a specific security, or to make recommendations for trading in a specific security, without providing reasonable analytical basis.
12.Failing to provide a reasonable analytical basis for judgments about market prices, market analyses, or industry trends.
13.Using collusion among major investors, speculation by industry groups, insider information, or other improper or unlawful information in appeals to solicit customers or as the basis for recommending specific securities.
14.Using any letters of recommendation, letters of thanks, records of past performance, or any other text or representation likely to cause a belief in the certainty of profit.
15.Failing to list the company's registered name, address, telephone number, or business license number in written documents produced for the purpose of promoting business.
16.Holding securities investment analysis activities, or producing written or electronic documents in the name of an associated person, internal research department, or name other than that of the SICE.
17.Violating the SITCA's self-regulatory provisions regarding advertising or promotional activities.
The self-regulatory provisions referred to in paragraph 1, subparagraph 17, and any amendments thereto, shall be drafted by the SITCA and implemented after submission for FSC approval.

Except where otherwise provided by the Act, the Securities and Exchange Act, the Futures Exchange Act, the Trust Enterprise Act, or other law or regulation, when a securities broker, futures broker, or trust enterprise concurrently operates securities investment consulting business, the department exclusively engaging in consulting business shall be administered through the mutatis mutandis application of this Chapter and of Article 5, subparagraph 3.
Except where otherwise provided by the Securities and Exchange Act, Futures Trading Act, Insurance Act, or Trust Enterprise Act, a securities broker, futures broker, managed futures enterprise, futures trust enterprise, insurance enterprise, or trust enterprise concurrently operating discretionary investment business shall be governed by the mutatis mutandis application of Article 5, subparagraph 3, Article 13, and Article 14.