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Article 9-1
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An offshore securities branch shall conduct the account custody business under Article 22-4, paragraph 1, subparagraph 5 of the Act in accordance with the following rules:
1. When an offshore securities branch conducts account custody business for customers, if the prospective customer is an onshore professional investor, it shall, under the name of the securities firm, open a segregated foreign exchange deposit account for depositing the customer's funds at a designated foreign exchange bank; if the prospective customer is an offshore individual, juristic person, government agency, or financial institution, it shall, under the name of the securities firm, open a segregated foreign exchange deposit account for depositing the customer's funds at an offshore banking branch or foreign custodian institution.
2. Withdrawal of cash from the foreign exchange deposit account for depositing the customer's funds is prohibited. Except for the purpose of making required payments or utilizing assets on behalf of the customer as authorized by the customer in connection with the offshore securities business, transfers of funds to and from the account are limited to bank accounts opened under the customer's own name. The offshore securities branch may not utilize any funds or assets under the preceding subparagraph.
3. To facilitate the compilation of statistics on foreign exchange receipts and disbursements or transactions, the offshore securities branch conducting account custody business shall also carry out information reporting in accordance with the rules of the Central Bank.
Pursuant to Article 37 of the Securities Investor and Futures Trader Protection Act, the assets in the segregated customer account under the preceding paragraph shall be kept separate and independent from the offshore securities branch's own assets.
A creditor seeking payment of debt owed by the offshore securities branch or its head office with respect to its own assets may not seek to attach or to exercise other rights against a segregated customer account under paragraph 1 or against assets obtained as a result of orders accepted from customers in the course of business.
The foreign custodian institution referred to in paragraph 1, subparagraph 1 shall meet one of the following conditions:
1. The custodian institution or its controlling or subordinate institution has established within the territory of the ROC a branch or subsidiary of a securities firm or bank.
2. If the custodian institution and its controlling or subordinate institution have not established within the territory of the ROC a branch or subsidiary of a securities firm or bank, the custodian institution shall be a financial institution meeting any one of the following credit rating standards:
A. Rated by Standard & Poor's Ratings Services with a long-term credit rating of BBB- or above and short-term credit rating of A-3 or above.
B. Rated by Moody's Investors Service, Inc. with a long-term credit rating of Baa3 or above and short-term credit rating of P-3 or above.
C. Rated by Fitch Ratings Ltd. with a long-term credit rating of BBB- or above and short-term credit rating of F3 or above.
D. Rated by Taiwan Ratings Corporation with a long-term credit rating of twBBB- or above and short-term credit rating of twA-3 or above.
E. Rated by Fitch Australia Pty Ltd, Taiwan Branch with a long-term credit rating of BBB-(twn) or above and short-term credit rating of F3(twn) or above.
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Article 13
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A managerial officer of an offshore securities branch must meet the qualification requirements set out in Article 2, paragraph 1 and Article 10, paragraph 1 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms. A person serving in that capacity pursuant to Article 10, paragraph 1, subparagraph 4 of the same Regulations, however, shall possess professional knowledge in the field of international finance or experience in foreign exchange business.
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