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Regulations Governing Securities Firms  CH

Amended Date: 2020.10.29 (Articles 14-6, 21, 32-1, 35-2, 68-1 amended,English version coming soon)
Current English version amended on 2020.02.03 

Title: Regulations Governing Securities Firms(2008.08.04)
Article 49-1 Securities firms or their overseas subsidiaries investing in securities companies in the Mainland China area, securities investment fund management companies, or futures companies shall comply with the provisions of the Regulations Governing Approval of Securities and Futures Transactions Between the Taiwan Area and the Mainland China Area.
Securities firms that have received approval to invest in securities companies in the Mainland China area are prohibited from doing any of the following:
1. Accepting any order to trade in Mainland China area securities.
2. Recommending that any investor in the Taiwan area invest in any securities traded on any Mainland China securities market or in any securities issued by a Mainland China area company.
A Mainland China securities company, securities investment fund management company, or futures company in which a securities firm or its overseas subsidiaries have invested may not provide services to Taiwan area individuals or enterprises.
Article 50 Securities firms investing in foreign enterprises, unless regulated by other laws, regulations and orders shall meet the following provisions:
1. Have not received any disciplinary warning from the Commission in the most recent 3 months
2. Have not been ordered by the Commission to relieve or replace the duties of its director, supervisor, or manager in the most recent six months.
3. Have not had business suspended as punishment from the Commission within the last year.
4. Have not had the license of branch offices or of a portion of the business invalidated by the Commission as punishment within the last 2 years.
5. Have not had trading terminated or restricted by the Stock Exchange, the GreTai, or the Futures Exchange as punishment under each of their regulations or rules.
6. The regulatory capital adequacy ratio has not been below 200% within the most recent 3 months, and the financial structure is sound and in accordance with the rules of these Regulations.
7. Comply with Article 6 of the Regulations Governing the Reserve for Losses on Foreign Investment Allocated by Companies promulgated by the Ministry of Economic Affairs.
8. The combined total amount invested in foreign enterprises plus the funds that a securities firm establishing an overseas branch office(s) appropriates there for local operations and the amount invested in Mainland China enterprises do not exceed 30% of the securities' firm's net worth. However, when there is special need and approval as a special case has been received, this provision does not apply.
Article 58-3 A securities firm establishing an overseas branch office shall report any matters relating to outward remittance of capital, registration, or amendment registration in accordance with Article 58.