Chapter I General Principles |
| Article 1 | These Regulations are adopted pursuant to Article 45-1, paragraph 1of the Regulations Governing Securities Firms, Article 11, paragraph 2 of the Standards Governing the Establishment of Securities Firms, and Article 21-1, paragraph 1 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.
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| Article 2 | Unless otherwise provided by law or regulation, a securities broker conducting equity crowdfunding business (hereinafter "securities firm") shall fully comply with these Regulations.
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| Article 3 | For the purposes of these Regulations, the following terms are defined as follows:
- Competent authority: the Financial Supervisory Commission
- Company: a company limited by shares that is organized in accordance with the Company Act of the R.O.C., and that is not publicly traded.
- Equity crowdfunding business: a securities firm establishing a website on the Internet to conduct the business of enabling companies to publicly raise funds from unspecified persons, enabling investors to subscribe to stock of the fundraising companies, and providing additional services for purposes related to the conduct of the aforementioned business.
- Crowdfunding platform: a website established by a securities firm on the Internet for companies to conduct equity crowdfunding and enabling investors to subscribe to company shares through the website.
- Information disclosure system: a website established by a securities firm on the Internet for the disclosure of information including the basic information, limitation on capital raised, and material information of the companies conducting equity crowdfunding for easy reference by investors.
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| Article 4 | A securities firm applying to conduct equity crowdfunding business shall submit the application documents specified in Article 9 or 39 of the Standards Governing the Establishment of Securities Firms to the Taipei Exchange ("TPEx"), which will review the documents and then forward them to the competent authority for the granting of permission.
After obtaining permission from the competent authority under the preceding paragraph, the securities firm shall submit the application documents specified in Article 10 or 40 of the Standards Governing the Establishment of Securities Firms to the TPEx, which will review the documents and then forward them to the competent authority for issuance or reissuance of a permission license.
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| Article 5 | A securities firm that has obtained the permission license issued or reissued by the competent authority under the preceding paragraph shall submit an application form (Attachment 1), specifying the required particulars, together with the required documents, to the TPEx to apply to enter into a contract for the conduct of equity crowdfunding business (Attachment 2).
If any circumstance that requires reporting under Article 4, paragraph 1 of the Regulations Governing Securities Firms occurs to a securities firm that has entered into the contract with the TPEx under the preceding paragraph, unless otherwise provided by law or regulation, the securities firm shall report the circumstance to the TPEx, which will forward the report to the competent authority.
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| Article 6 | Unless otherwise provided by law or regulation, a securities firm shall adopt an internal control system pursuant to the Standard Directions for the Internal Control Systems of Securities Firms adopted by the TPEx.
The conduct of the business of a securities firm shall comply with laws and regulations, its articles of incorporation, and the internal control system referred to in the preceding paragraph.
Whenever the TPEx gives notice to make any change to the internal control system referred to in paragraph 1, the change shall be made within the specified time limit.
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| Article 7 | The site and facilities of a securities firm conducting equity crowdfunding business shall comply with the standards governing sites and facilities as prescribed by the TPEx.
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| Article 8 | Unless otherwise provided by law or regulation, a securities firm shall install internal auditors to examine the company's finance and business on a monthly basis, and prepare internal audit reports and keep them available for audit.
The internal audit reports referred to in the preceding paragraph shall include comments on the compliance of the securities firm's finance and business with relevant laws and regulations and the internal control system of the company.
Unless otherwise provided by law or regulation, a securities firm shall file with the TPEx in the prescribed format, its next year's annual audit plan by the end of each fiscal year, and a report on the execution of its previous year's annual audit plan within 2 months from the end of each fiscal year.
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| Article 9 | The supervisors and personnel implementing the equity crowdfunding business, and the chief internal auditor, in a securities firm shall have the qualification of a Securities Specialist or higher, and shall receive orientation training and continuing professional on-the-job training as required by the TPEx.
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