1.3 Customer/Account Deregistration

1.3 Customer/Account Cancellation

1.3A Q: Can an account with a negative balance be closed?

Answer: No. The account must have a zero balance and hold no positions before it can be closed. Please have the customer replenish the shortfall or use an adjustment entry to cover the deficit. After the shortfall has been remedied, proceed with account closure.

1.3B Q: If an account has no cash and no holdings, will a statement be generated?

Answer: No. A daily statement is generated only when there is movement of funds or positions in the account. A monthly statement will be produced if the account has assets.

1.3C Q: What is the difference between permanent cancellation and standard cancellation?

Answer: Permanent cancellation: After successful cancellation of the customer, re-registration is permitted immediately.

Standard cancellation: After successful cancellation of the customer, re-registration is not permitted within three months.

1.3D Q: What is the difference between deregistering a customer and closing an account?

Answer: Deregistering a customer refers to removing the customer's registration record in the app (see Figure 1.3D-1); Closing an account refers to cancelling the securities account (see Figure 1.3D-2).

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After cancellation, the account number cannot be reused.

Figure 1.3D-1

Figure 1.3D-2