Section II Foreign Securities Firms |
| Article 27 | (Deleted) |
Info |
| Article 28 | A foreign securities firm that intends to establish a branch office within the territory of the Republic of China (ROC), shall meet all of the following qualifications:
1. The applicant possesses sufficient international securities business experience and financial soundness for the business type being applied for.
2. The applicant has not been sanctioned by its home country's securities regulatory authorities within the most recent 2 years.
The sufficient international securities business experience referred to in subparagraph 1 of the preceding paragraph requires more than 3 years in the securities business and one of the following criteria:
1. Verification of sufficient international securities business experience through the governing institution or other organization of the firm's home country, or through any other institution recognized by the FSC.
2. Obtaining from a country other than the firm's home country a membership or trading qualification of a stock exchange.
3. Having established a place of business operation located outside of the firm's home country or business operations in overseas markets, and having overseas operating income from the same type of operations applied for.
The financial soundness referred to in paragraph 1, subparagraph 1 requires the most recent CPA audited and attested financial report to indicate that the net value of per share is not below par value. |
Info |
| Article 29 | A foreign securities firm applying for the establishment of a branch office within the territory of the ROC shall deposit operating capital which shall not be less than the total amount of the increase in minimum paid-in capital required for establishment of a branch office under Article 21, and the business bond and the settlement/clearance fund required to be deposited in accordance with Articles 9 and 10 of the Regulations Governing Securities Firms, Article 6 of the Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, and the requirements of other rules and regulations. However, when subsequently further applying for the establishment of a branch office thereafter, the firm shall deposit the business bond and the settlement/clearance fund in accordance with the provisions, applied mutatis mutandis, of Articles 9 and 10 of the Regulations Governing Securities Firms regarding the amounts required to be deposited for establishment of securities firm branch offices.
A foreign securities firm applying for the establishment of a branch office shall maintain in the ROC assets which shall not be less than the amount of the special reserve required to be appropriated in accordance with Article 14 of the Regulations Governing Securities Firms and the amount of the liabilities on the balance sheet of the branch office. |
Info |
| Article 30 | The provisions of Articles 6 and 8 shall apply mutatis mutandis to the establishment of branch offices within the territory of the ROC by foreign securities firms. |
Info |
| Article 31 | In filing an application with the FSC for a permit to establish a branch office, a foreign securities firm shall submit all of the following documentation:
1. The application for establishment of the branch office (Annex 10).
2. Certified copy of its articles of incorporation or document equivalent to articles of incorporation.
3. Business plan: specifying the principles of business operation; internal organization and division of labor; personnel recruitment; overview of site and facilities; and financial forecasts for the next 3 years.
4. Internal control system required by Article 11.
5. Securities business license issued by the securities regulatory agency or an equivalent agency of its home country and documentation certifying compliance with the requirements under Article 28.
6. Document issued by the competent securities authority of the home country of the foreign securities firm and its parent company approving its establishment of a branch office within the territory of the ROC.
7. Documentary proof that the parent company of the foreign securities firm has approved its establishment of the branch office within the territory of the ROC and has made a commitment of financial responsibility regarding the branch office.
8. List of directors, managerial officers, and shareholders who hold five percent or more of its shares.
9. Certified copy of the minutes of the board of directors meeting at which the resolution to establish the branch office in the ROC was made.
10. Names, nationalities, and domiciles of directors and other responsible persons.
11. Names, nationalities and domiciles or residence and the power of attorney of designated agents for litigious and non-litigious matters in the ROC.
12. Balance sheets and income statements audited and attested by CPAs for the most recent 3 years.
13. Power of attorney designating the agent for the purpose of applying to the FSC for establishment of the branch office.
14. Documentation of identification for the agent for litigious and non-litigious matters in the ROC.
15. Documentation affirming the availability to the computer linkage as required under Article 8.
16. Other documents as required by the FSC.
If any of the aforesaid documentation is in a foreign language, it must be accompanied by a Chinese translation. |
Info |
| Article 32 | Within 6 months from the date of the permit issued by the FSC for a foreign securities firm's application to establish a branch office, it shall complete the incorporation registration of the branch office and submit all of the following documentation to the FSC to apply for issuance of the business license of the branch office:
1. The application (Annex 11).
2. Photocopy of the branch office incorporation registration certificate.
3. List of managerial officers and associated persons with certification of their qualifications.
4. Documentation certifying compliance with Article 6.
5. Documentation certifying deposit of the business bond.
6. Contract affirming the availability to utilize the computer linkage facilities under Article 8.
7. Other documents as required by the FSC.
The permit for the establishment of a foreign securities firm's branch office 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 foreign securities firm 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 32-1 | In any of the following circumstances, the FSC may deny an application from a foreign securities firm for permission for establishment of a branch office:
1. Any of the circumstances in Article 53 of the Act applies with respect to a managerial officer of the branch office.
2. Any misrepresentation or falsehood is found in any content or information in the application documents.
3. The business plan or the internal control system is not concrete enough, or cannot be implemented effectively.
4. Other circumstances under which denial of permission is considered necessary to protect the public interest.
If the application documents submitted under this Chapter are incomplete or otherwise contain incomplete information, and the situation is not corrected within a time limit designated by the FSC, the application documents will be rejected. |
Info |
| Article 33 | A foreign financial institution, with approval from its home country government, may apply to the FSC for the establishment of a branch office for the operation of securities business.
The provisions of Articles 6, 8, 11 through 15, 19, 20, 29, 31, 32, and 32-1 shall apply mutatis mutandis to foreign financial institutions, other than FCMs, that apply for their branch offices established within the territory of the ROC to concurrently operate securities business.
The provisions of Articles 6, 8, 11 to 15, 16-1, 16-2, 19, 20, 29, 31, 32, and 32-1 shall apply mutatis mutandis to foreign FCMs that apply for their branch offices established within the territory of the ROC to concurrently operate securities business. |
Info |
| Article 33-1 | A foreign securities firm intending to establish a representative office in the ROC shall meet both of the following qualifications:
1. The applicant possesses sufficient experience in international securities business.
2. The applicant has not been sanctioned by suspension of business or a more severe penalty by its home country's securities regulatory authorities within the most recent year.
The term "sufficient experience in international securities business" in subparagraph 1 of the preceding paragraph shall be subject, mutatis mutandis, to the provisions of Article 28, subparagraph 2. |
Info |
| Article 33-2 | In filing an application with the FSC for approval to establish a representative office within the territory of the ROC, a foreign securities firm shall submit all of the following documentation:
1. Application for the establishment of a representative office.
2. Securities business license issued by the securities regulatory agency or equivalent agency of the home country and documents certifying compliance with the qualification requirements under Article 33-1.
3. Certified copy of its articles of incorporation or document equivalent to articles of incorporation.
4. Certified copy of the minutes of the board of directors meeting at which the resolution to establish a representative office in the ROC was made.
5. Balance sheets audited and attested by CPAs for the most recent 3 years.
6. Certified copy of the power of attorney designating the representative.
7. Resume of the authorized representative.
8. Certified copy of the power of attorney designating the agent for the purpose of applying to the FSC for establishment of the representative office.
9. Other documents as required by the FSC.
If any of the aforesaid documentation in foreign language, it must be accompanied by a Chinese translation. |
Info |
| Article 33-3 | For a foreign securities firm that establishes a representative office within the territory of the ROC, its representative office is prohibited from operating the business under Article 15 of the Securities and Exchange Act. |
Info |