| Title： |
Standards Governing the Establishment of Securities Firms(2007.10.02) |
| Date： |
|
|
Article 2
|
Each type of securities business which may be operated by a securities firm shall be approved separately by the Financial Supervisory Commission (FSC), Executive Yuan under the Act and these Standards. The approved type of securities business shall be specified by the license of each securities company. The operation of securities business shall not he undertaken before it is approved and specified by the license.
|
|
Article 14
|
With the exceptions of futures commission merchants (FCM), financial institutions engaged in proprietary trading of government bonds, and those that have already obtained permission to engage in concurrent operations prior to the issuance of these Standards, a financial institution that concurrently engages in securities business shall restrict such concurrent operations to one of the following only:
1. securities underwriting;
2. securities dealing;
3. securities trading brokerage or intermediary services;
4. securities underwriting and dealing;
5. securities dealing and securities brokerage at its place of business.
An FCM that concurrently engages in securities business shall restrict such concurrent operations to one of the following only:
1. securities dealing;
2. securities trading brokerage or intermediary services;
3. proprietary trading of securities and securities trading brokerage or intermediary services.
An FCM that is concurrently operated by another business may not apply to concurrently engage in securities business.
|
|
Article 16-1
|
An FCM that applies to concurrently engage in securities business shall meet all of the following requirements:
1. Its CPA-audited and certified financial report for the most recent period shows no accumulated deficit, is in compliance with Article 17 of the Regulations Governing Futures Commission Merchants, and is free of the circumstances specified in Article 22 of those same Regulations.
2. It has not been subject to a warning sanction by the FSC in the most recent three months.
3. In the most recent half-year it has not been subject to any FSC sanction under Article 66, subparagraph 2 of the Act ordering the company to dismiss any director, supervisor, or managerial officer from office, nor subject to any FSC sanction under Article 100, paragraph 1, subaparagraph 2 of the Futures Trading Act ordering it to dismiss its responsible person or other relevant personnel.
4. It has not been subject to any FSC sanction suspending business operations in the most recent year.
5. It has not been subject to any FSC sanction revoking a portion of its business permit in the most recent two years.
6. It has not, in the most recent year, had its trading operations suspended or restricted pursuant to the bylaws of a futures exchange or futures clearing house.
7. Other requirements as specified by the FSC.
If an FCM is not in compliance with a requirement in subparagraphs 2 to 6 of the preceding paragraph, but the circumstances have shown concrete improvement, it may be exempted from those restrictions with the approval of the FSC.
|
|
Article 16-2
|
An FCM that applies to concurrently engage in securities business shall, except as otherwise provided by law, establish an independent department dedicated to handling securities business. That department's operations and accounting must be independent.
|
|
Article 17
|
In filing an application with the FSC for the permit to concurrently operate securities business, a financial institution shall submit the following documentation:
1. the application (Annex 6);
2. a photocopy of its business license;
3. articles of incorporation or equivalent documentation;
4. a business plan which specifies: the principles of business operation; the division of internal organization; the employment of personnel; the description of facilities; and its financial projection for the next three years;
5. the minutes of the Board of directors;
6. the list of directors and supervisors;
7. a statement declaring the inapplicability of Article 53 of the Act in respect of its directors and supervisors (Annex 5);
8. the certification of the deposit made under Article 7;
9. the documentation affirming the availability to the computer linkage as required under Article 8; and
10. other documents that the FSC may so require.
An FCM that applies to concurrently engage in securities business, in addition to submitting the documentation of the preceding paragraph, shall also submit the most recent CPA-audited and certified financial report, and operating rules regarding risk differentiation and conflict of interest for securities and futures business operations.
|
|
Article 33
|
A foreign financial institution, with approval from its home government, may apply to the FSC for the establishment of branch offices for the operation of securities business.
The provisions of Articles 6, 8, 11 through 15, 19, 20, 29, 31, and 32 shall apply mutatis mutandis to foreign financial institutions, other than FCMs, that apply for their branch offices established within the territory of the Republic of China to concurrently operate securities business.
The provisions of Articles 6, 8, 11 to 15, 16-1, 16-2, 19, 20, 29, 31, and 32 shall apply mutatis mutandis to foreign FCMs that apply for their branch offices established within the territory of the Republic of China to concurrently operate securities business.
|