Chapter VI Addition of Type of Business |
| Article 38 | A securities firm or a financial institution concurrently operating securities business that applies for an additional type of business shall meet all of the following requirements:
1. The applicant has not been sanctioned by the FSC with a warning under Article 66, subparagraph 1 of the Act within the most recent 3 months.
2. The applicant has not been sanctioned by the FSC with an order under Article 66, subparagraph 2 of the Act to dismiss any of its directors, supervisors, or managerial officers or with replacement of its responsible person or other related personnel under Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act within the most recent half year.
3. The applicant has not been sanctioned by the FSC with suspension of business operations within the most recent 1 year.
4. The applicant has not been sanctioned by the FSC with voidance of permission for any part of its business within the most recent 2 years.
5. The applicant has not been sanctioned with suspension or restriction of trading by the TWSE, TPEx, or TAIFEX pursuant to its rules or bylaws within the most recent 1 year.
6. The regulatory capital adequacy ratio of the securities firm is not lower than 150 percent.
If a securities firm does not meet a requirement set forth in any of subparagraphs 1 to 5 of the preceding paragraph, but has shown concrete improvement in the circumstances, and the FSC has recognized the improvement, the securities firm may be exempted from the relevant requirement. |
Info |
| Article 39 | When a securities firm or a financial institution that concurrently operates securities business applies for an additional type of business, it shall submit all of the following documentation to the FSC to apply for permission:
1. Articles of incorporation or document equivalent to articles of incorporation.
2. Business plan: specifying the principles for the operation of the additional type of business; internal organization and division of labor; personnel recruitment; overview of the site and facilities; and financial forecasts for the next 3 years.
3. Meeting minutes of the board of directors (or board of governors).
4. Internal control system required under Article 11 (including the additional business type).
5. Documentation affirming the availability of the computer linkage as required under Article 8.
6. Other documents as required by the FSC. |
Info |
| Article 40 | After a securities firm or a financial institution that concurrently operates securities business has applied for an additional type of business and obtained permission, it shall within 6 months duly carry out registration of the additional type of business, and submit the following documents to apply to the FSC for issuance of a replacement business license with the additional type of business:
1. Photocopy of the company license with the additional type of business.
2. List of managerial officers and associated persons with certification of their qualifications.
3. Documentation certifying compliance with Article 6.
4. Documentation certifying the deposit of the business bond.
5. Contract affirming the availability to utilize the computer linkage facilities under Article 8.
6. Other documents as required by the FSC.
The permit for the additional type of business shall be voided if the applicant fails to apply for the license within the period prescribed in the preceding paragraph. The period prescribed in the preceding paragraph may be extended, however, if the applicant applies to the FSC, with good cause, prior to the expiration of the period. Such an extension shall not exceed 6 months and may be granted only once. |
Info |
| Article 40-1 | In the event that a securities firm or a financial institution that concurrently operates securities business only applies to add the business of proprietary trading in government bonds, its application for the permit under Article 39 may be exempted from submission of the documentation required under subparagraph 2; its application for the business license under Article 40 may be exempted from submission of the documentation required under subparagraph 3. |
Info |
| Article 41 | The provisions of Article 3, 6, 8, 11, 14 and 15 shall apply mutatis mutandis to an application for an additional type of business by a securities firm or a financial institution that concurrently operates securities business. The provisions of Article 3, 11, 14 and 15 shall apply mutatis mutandis to an application thereby that is only for addition of the business of proprietary trading in government bonds, and the securities firm or financial institution shall assign at least one full time associated person to deal with such business. |
Info |
| Article 41-1 | Articles 38 to 40 apply mutatis mutandis to a securities firm or a financial institutions concurrently operating securities business that applies for additional business item(s). However, if this does not involve issuance of a replacement business license, the mutatis mutandis application of Article 40 is exempted. |
Info |