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Taiwan Stock Exchange Corporation Directions for the Sublease of Business Premises Leased and Rented by Idle Assets of a Securities Firm  CH

Announced Date: 2017.07.05 
Categories: Market Supervision > Regulation of Securities Firms
1     Lease of idle assets:
  1. Idle assets that a securities firm may lease are limited to the following:
    1. existing self-owed real property for operating purposes that have been filed and approved in accordance with the TWSE Procedure for the Review of Purchase of Real Property by Securities Firms
    2. existing real property of the dissolved securities firm that are available for non-operating purposes, as obtained by virtue of a merger and assignment
  2. Idle assets leased shall be included in thetotal amount of real property and equipment used for operating purposes and the total amount of real property used for non-operating purposes as held under Article 16 of the Regulations Governing Securities Firms.
  3. A securities firm leasing idle asset shall retain the following documents:
    1. an original of the lease agreement notarized by court, including an enforcement clause and a non-sublease clause
    2. a photocopy of each of the purchase or merger and assignment approval and the amended permit or license
    3. a statement of reasons for the lease
    4. a photocopy of the lessee's identification or company license
    5. a statement as to whether the lessee and lessor are related parties
2     Sublease of business premises rented:
  1. A securities firm to sublease business premises rented shall execute a lease agreement with the sub-lessee, including an enforcement clause and a non-sublease clause, and have the agreement notarized by court.
  2. The rental stated in the sublease agreement shall be the consideration (which shall be the reasonable price for the same area). A disclosure shall be made in the financial reports if the sub-lessee is a related party.
  3. After the rented business premises are subleased, the business premises and facilitiesthat are actually available to the securities firm for operating purposes shall conform to the TWSE Standards Governing the Places of Business and Facilities of Securities Firms and Securities Introducing Brokers.
3     These Directions shall take effect after having been submitted to and approved by the competent authority. Subsequent amendments thereto shall be effected in the same manner.