| Title： |
Standards Governing the Establishment of Securities Firms(2014.12.22) |
| Date： |
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Article 14
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With the exceptions of futures commission merchants (FCM), proprietary trading of government bonds, foreign bond trading agency business, business with special approval granted by the FSC based on policy considerations, and business for which a permission for concurrent operation has been obtained prior to the issuance of these Standards, a financial institution that concurrently engages in securities business shall restrict such concurrent operations to only one of the following:
- Securities underwriting.
- Securities dealing.
- Securities trading brokerage or intermediary services.
- Securities underwriting and dealing.
- Securities dealing and securities brokerage at its place of business.
An FCM that concurrently engages in securities business shall restrict such concurrent operations to only one of the following:
- Securities dealing.
- Securities trading brokerage or intermediary services.
- Securities dealing 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.
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Article 25-2
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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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