The term "associated persons" as used in these Regulations refers to those personnel carrying out the following operations on behalf of a leverage transaction merchant:
1.Research and analysis or product design for leverage contracts.
2.Recommendation or sale of leverage contracts.
3.Clearing and settlement for leverage contracts.
4.Internal audits in connection with leverage contracts.
5.Legal compliance in connection with leverage contracts.
6.Serving as in-charge accountant for leverage contracts.
7.Risk management for leverage contracts.
8.Conducting other approved business.

The following associated persons of a leverage transaction merchant shall not perform business activities beyond the scope of their 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.Internal auditors.
2.Risk management personnel.
Associated persons of a leverage transaction merchant who are engaged in research and analysis or in product design or recommendation or sale may not concurrently hold a position involved in clearing and settlement or concurrently serve as in-charge accountant.
The position of associated person handling research and analysis or product design or recommendation or sale at a leverage transaction merchant may be concurrently held by an associated person registered to handle proprietary trading for the futures commission merchant; the position of associated person handling clearing and settlement, internal auditing, legal compliance, or risk management, or serving as in-charge accountant, may be concurrently held by an associated person engaged in operations of the same nature for the futures commission merchant.
The position of managerial officer in the dedicated unit for leverage transactions at a futures commission merchant concurrently operating a leverage transaction merchant may be concurrently held by the managerial officer of the futures commission merchant's proprietary trading department.
A leverage transaction merchant shall establish internal audit and control mechanisms to ensure that any concurrent holding of positions by any of its associated persons is limited to the scope necessary for the effective execution of the associated person's principal duties and duties of the other position concurrently held, and for maintaining the business operations of the leverage transaction merchant. The concurrent holding of positions may not involve any conflict of interest or violation of applicable futures regulations or the internal control system provisions, and the rights and interests of customers and shareholders shall be protected.

The business of a leverage transaction merchant shall be carried out by qualified, registered associated persons; when engaging in business, qualified, registered associated persons shall wear identification badges.
Registration, and any change in registration, of a responsible person or associated person at a leverage transaction merchant shall be carried out through the Futures Association by the leverage transaction merchant to which they belong; responsible persons and associated persons may not engage in their appointed duties without such prior registration.
Given any of the following circumstances, the registration referred to in the preceding paragraph may not be made, and if already made, shall be revoked:
1.Any of the circumstances under Article 28 of the Act.
2.The provisions regarding qualification for managerial officer or associated person applied mutatis mutandis under Article 23 are not met.
3.Violation of the provisions of the preceding Article.
4.Failure to participate in pre-service training or in-service training and to obtain a qualifying grade in such training pursuant to the provisions applied mutatis mutandis under Article 23.
5.Factual evidence of being engaged in or connected with other bad faith or inappropriate activities, demonstrating unsuitability to serve as a responsible person or associated person.
If there is any change of a responsible person or associated person at a leverage transaction merchant, the leverage transaction merchant shall report the change to the Futures Association and replace or surrender their identification badges within 5 business days of the occurrence of the change; prior to the registration of any such change, the leverage transaction merchant to which the responsible person or associated person belongs remains liable for the conduct of the person.

The responsible person and associated persons of a leverage transaction merchant shall faithfully carry out their duties in keeping with the principle of good faith and honesty.
In addition to conduct prohibited under Article 63 of the Act, the enterprise and the persons referred to in the preceding paragraph may not engage in the following conduct:
1.Conducting trading of leverage contracts by means of fraud, coercion, or other improper methods.
2.Entering into any agreement with a customer to share benefits or bear losses, or directly or indirectly soliciting, agreeing to accept, or accepting improper benefits.
3.Engaging in conduct involving falsehood, deception, or other conduct obviously inconsistent with fact or that would be sufficient to cause mistaken confidence on the part of others.
4.Engaging in any act contrary to the intent of the instructions of a client or the client's interests without the consent of such client.
5.Allowing a third party to use the name of the enterprise or the person to engage in leverage contract trading business.
6.Directly or indirectly setting up a fixed place outside the place of business of the company to sign written agreements with customers, except when the competent authority has provided otherwise.
7.Misappropriating the funds or securities of a client.
8.Keeping custody of a customers funds, personal seal, or passbook on their behalf, except when the competent authority has provided otherwise.
9.Failing to provide the necessary reply or handling in response to a client's inquiry regarding the particulars of a trade, thus causing damage to the client's rights and interests.
10.Making false statements in account books, statements, or documents required by acts and regulations, or failing to prepare, report, publicly announce, make available, or retain such items.
11.Failing to submit, within the prescribed time limit, account books, statements, documents, or other reference materials or reports required by order of the competent authority, or refusing or interfering with an inspection conducted by the competent authority pursuant to laws.
12.Lending to or borrowing from clients, or acting as an intermediary for such lending or borrowing.
13.Producing false trading records.
14.Using information obtained through business relationships to conduct trading on one's own account, or to provide others with such information for their use in trading.
15.Making use of non-employees to carry out business relating to leverage contract trading.
16.Carrying out the duties of one's position under another's name or having another carry out one's duties under one's own name.
17.Conducting other acts in violation of laws and regulations or orders of the competent authority mandating or prohibiting certain acts.
In conducting business, the persons referred to in the preceding paragraph may not engage in any conduct that a leverage transaction merchant is prohibited from engaging in by law or regulation.
Personnel other than associated persons are likewise prohibited from the conduct referred to in the preceding two paragraphs, and furthermore may neither perform the duties of an associated person nor act as a deputy for an associated person.

The provisions of Article 2, paragraph 1, Articles 3, 3-2, and 4, Article 5, paragraphs 1 and 2, Article 5-1, paragraph 1, Articles 6, 7-1, 10 through 15, 18, and 18-1 of the Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants apply mutatis mutandis to leverage transaction merchants.