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Members’ Liability and Measures to Be Taken
The Regulation determines liabilities and measures for the CRA’s
members. Pursuant to Article 25, members shall be liable for all trans-
actions at the CRA. Members’ liability cannot be abrogated or restrict-
ed through agreement provisions concluded between Members and
clients. All members shall act in accordance with the rules of good
faith and correctness. In order to guarantee the pecuniary and legal lia-
bility, they shall take out the general and special insurances set forth by
the CRA and take other measures. Furthermore, they must notify the
CRA immediately on the day of realization as to any changes con-
cerning partnership, management structure, and financial state. As per
Article 29 of the Regulation, in case there are erroneous entries, the
CRA and its members shall also be liable. In this case, the CRA and its
members shall be liable for the damages of rights holders, in propor-
tion to their faults. Liability cannot be mitigated or abrogated with the
agreements concluded between CRA and its members. The board of
directors may also decide that members shall take out liability insur-
ance for the indemnification of damages as stated in Article 29.
Conclusion
The Regulation sets forth the foundation, operation, membership
and audit principals, incomes and dividend distribution principles of
the Agency. The CRA’s current activities and requirements related to
its duties and authorizations, which are determined by the Capital
Markets Law, are considered within the related Regulation.
CAPITAL MARKETS LAW
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