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Article 50
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A securities firm applying to invest in a foreign enterprise, unless otherwise provided by laws or regulations, shall meet the requirements listed below; however, if a securities firm does not meet a condition in subparagraphs 1 to 5, but concrete improvement has been made, and the improvement has been recognized by the FSC, it may be exempted therefrom:<br/>1. Have not been sanctioned by the FSC with a warning in the most recent 3 months.<br/>2. Have not been sanctioned by the FSC with an order to dismiss or replace any of its directors, supervisors, or managerial officers in the most recent 6 months.<br/>3. Have not been sanctioned by the FSC with suspension of business within the last 1 year.<br/>4. Have not been sanctioned by the FSC with revocation of the license of any branch office, simple branch office, or portion of its business within the last 2 years.<br/>5. Have not been sanctioned with suspension or restriction of trading by the TWSE, TPEx, or TAIFEX pursuant to its rules or bylaws within the last 1 year.<br/>6. Its regulatory capital adequacy ratio has not been below 200 percent within the most recent 3 months, and its CPA audited or reviewed financial report for the most recent period shows no accumulated deficit, and its financial condition meets the provisions of Articles 13, 14, 16, 18, 18-1 and 19. However, the requirement regarding the aforementioned regulatory capital adequacy ratio does not apply if special-case approval has been obtained due to special needs.<br/>7. Its combined total amount invested in foreign enterprises plus any funds that the securities firm establishing an overseas branch office(s) appropriates there for local operations plus any amount invested in Mainland China enterprises do not exceed 40 percent of the securities' firm's net worth. However, when there is special need and approval as a special case has been received, this provision does not apply.
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