Section I-1 Overseas Branch Units and Representative Offices |
| Article 25-1 | A securities firm established under these Standards may apply to establish an overseas branch unit(s) upon the completion of 3 years of operation.
Applications to establish an overseas branch unit under the preceding paragraph shall be confined to locations that have a centralized securities exchange market and a dedicated competent authority, and have been publicly announced by the FSC.
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| Article 25-2 | A securities firm establishing an overseas branch unit(s) shall comply with the provisions of all the following subparagraphs:
- Concurrently operate three kinds of business, securities underwriting, proprietary trading, and brokerage or commission agency, and have net worth of not less than NT$3 billion on the financial report for the most recent period audited and attested by CPAs.
- Have net worth per share of not less than par value on the financial report for the most recent period audited and attested by CPAs and have financial condition complying with the standards prescribed in Article 49 of the Act.
- Comply with the provisions of Article 20, paragraph 1, subparagraphs 2 through 6.
- Have a regulatory capital adequacy ratio of not less than 200 percent and a sound financial structure, provided that this restriction does not apply if the securities firm has been granted special approval due to special needs.
If a securities firm does not meet a requirement in subparagraph 3 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.
The sum of the funds that a securities firm establishing an overseas branch unit(s) appropriates there for local operations plus the total funds the securities firm invests in foreign and mainland enterprises shall not exceed 40 percent of the securities firm's net worth, provided that this restriction does not apply if the securities firm has been granted special approval due to special needs.
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| Article 25-3 | The minimum paid-in capital of a securities firm shall be increased by NT$30 million for each overseas branch unit it establishes.
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| Article 26 | A securities firm applying for the permit to establish branch units or representative offices overseas or a financial institution with approval to concurrently operate securities business applying for the permit to concurrently operate securities business by its overseas branch units shall submit all of the following documentation to the FSC:
- Application for establishment of the branch unit or representative office.
- Articles of incorporation or equivalent documentation.
- A business plan: for the establishment of branch units, the plan shall specify the principles of business operation by its overseas branch units, the division of internal organization, the employment of personnel, the description of facilities, and its financial projection for the next 3 years; for the establishment of representative offices, the plan shall specify the organization of and affairs to be dealt with by its representative offices.
- The meeting minutes of the Board of directors.
- The system of internal control required under Article 11 (including that of the overseas branch units or representative offices).
- For the establishment of branch units, a feasibility assessment report must be submitted, specifying: the factors in the choice of the location for establishment; provisions of acts and regulations regarding matters such as local restrictions applying to foreign securities firms with respect to application procedures, review standards, business operations, and whether the competent authority of the home country may collect and inspect information on the financial and operational condition of the branch unit; self-assessment describing the compliance of the application case with local acts and regulations, operational risk assessment and benefit analysis.
- Other documents that the FSC may require.
If the business that would be handled, under local securities acts and regulations and customary business practices, by the overseas branch unit that the securities firm is applying to establish surpasses the business items of the head office, all of the following documents shall be submitted in addition to the documents in the preceding paragraph:
- Business item particulars: including the products to be handled, types of transactions, and trading counterparts and markets.
- Local acts and regulations that must be complied with when engaging in such business.
- Internal control and risk management plan.
- Legal opinion by a lawyer.
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| Article 26-1 | A securities firm that has applied to establish branch units or representative offices overseas or a financial institution concurrently operating securities business that has applied for its overseas branch units to concurrently operate securities business shall, after obtaining approval for establishment from the local competent authority, submit all of the following documentation to the FSC for recordation before commencing business:
- Photocopy of the document issued by the local competent authority to approve the establishment.
- List of managers and associated persons or representatives.
- Date of establishment and detailed address.
- For establishment of a branch unit, the business items the local competent authority has approved for operation shall also be submitted.
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| Article 26-2 | A securities firm that has already established an overseas branch unit or representative office shall still be required to file an application with the FSC in accordance with the provisions of this Section when establishing an additional branch unit(s) or representative office(s) in the same country or region.
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