Section I-1 Overseas Branch Offices and Representative Offices |
| Article 25-1 | A securities firm established under these Standards may apply to establish an overseas branch office(s) upon the completion of 3 years of operation.
Applications to establish an overseas branch office 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 office(s) shall comply with the provisions of all the following subparagraphs:
1. Concurrently operate the three types of business of 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.
2. 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.
3. Comply with the provisions of Article 20, paragraph 1, subparagraphs 2 through 6.
4. 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 under 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 office(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 office it establishes. |
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| Article 26 | A securities firm applying for a permit to establish a branch office or representative office overseas or a financial institution with approval to concurrently operate securities business applying for a permit for its overseas branch office to concurrently operate securities business shall submit all of the following documentation to the FSC:
1. Application for establishment of the branch office or representative office.
2. Articles of incorporation or document equivalent to articles of incorporation.
3. Business plan: for the establishment of a branch office, the plan shall specify the principles of business operation by the overseas branch office, internal organization and division of labor, personnel recruitment, overview of the site and facilities, and its financial forecasts for the next 3 years; for the establishment of a representative office, the plan shall specify the organization of and affairs to be dealt with by its representative office.
4. Meeting minutes of the board of directors or (board of governors).
5. Internal control system required under Article 11 (including the overseas branch office or representative office).
6. For the establishment of a branch office, a feasibility assessment report must be submitted, specifying: the factors in the choice of the location for establishment; provisions of laws 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 office; self-assessment describing the compliance of the application case with local laws and regulations, operational risk assessment and benefit analysis.
7. Other documents as required by the FSC.
If the business that would be handled, under local securities laws and regulations and customary business practices, by the overseas branch office that the securities firm is applying to establish extends beyond the business items of the head office, all of the following documents shall be submitted in addition to the documents in the preceding paragraph:
1. Business item particulars: including the products to be handled, types of transactions, and trading counterparts and markets.
2. Local laws and regulations that must be complied with when engaging in such business.
3. Internal control and risk management plan.
4. Legal opinion by a lawyer. |
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| Article 26-1 | A securities firm that has applied to establish a branch office or representative office overseas or a financial institution concurrently operating securities business that has applied for its overseas branch office 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:
1. Photocopy of the document issued by the local competent authority to approve the establishment.
2. List of managers and associated persons or representatives.
3. Date of establishment and detailed address.
4. For establishment of a branch office, 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 office or representative office shall still be required to file an application with the FSC in accordance with the provisions of this Section when establishing any additional branch office or representative office in the same country or region. |
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