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A securities firm that meets the following conditions and qualifications may conduct wealth management business after obtaining approval from the Financial Supervisory Commission (FSC), and shall do so in accordance with these Directions:
(1) Regulatory capital adequacy ratio: its regulatory capital adequacy ratio reported prior to applying exceeds 200 percent.
(2) Credit rating: Has a long-term credit rating of twBBB or above from Taiwan Ratings Corporation, or of BBB (twn) from Fitch Ratings Limited, Taiwan Branch, or of Baaii. tw from Moody's Investors Service Taiwan Branch, or of BBB from Fitch Ratings Ltd, or of BBB from Standard & Poor's Corp., or of Baa2 or above from Moody's Investors Service.
(3) Legal compliance
i. Has not, within the past three months, been sanctioned under Article 66, subparagraph 1 of the Securities and Exchange Act or under Article 100, paragraph 1, subparagraph 1 of the Futures Trading Act.
ii. Has not, within the past six months, been sanctioned under Article 66, subparagraph 2 of the Securities and Exchange Act or under Article 100, paragraph 1, subparagraph 2 of the Futures Trading Act.
iii. Has not, within the past one year, had a sanction imposed by the FSC to suspend its business.
iv. Has not, within the past two years, had a sanction imposed by the FSC to revoke any part of its business permit.
v. Has not, within the past one year, had a sanction of suspended or restricted trading imposed on it by the Taiwan Stock Exchange Corporation, GreTai Securities Market, or Taiwan Futures Exchange, under the operating rules or corporate bylaws thereof.
A securities firm that fails to meet the compliance requirements in subparagraph (3) of the preceding paragraph may be exempted from restriction under that subparagraph if it can specifically document that it has already corrected the infraction.
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To conduct wealth management business, a securities firm shall apply to the FSC, furnishing the documents listed below. Approval to conduct the business is deemed to be granted if the FSC does not raise any objection within 15 days:
(1) Minutes of the directors meeting that approved the plan to conduct wealth management business.
(2) Business plan: to include, among other items, the management policy and working procedures set out in Point 5 of these Directions.
(3) Documentary proof that the securities firm meets the qualification requirements for conducting wealth management business (proof that it has not been sanctioned by the FSC authority is not needed).
A Taiwan branch of a foreign securities firm intending to apply to conduct wealth management business shall furnish a letter of consent from the board of directors of its head office when applying to the FSC, and shall comply with the provisions of Point 2, paragraph 1, subparagraph 3, herein. The regulatory capital adequacy ratio and long-term credit rating of its head office shall meet the standards set out in Point 2, paragraph 1, subparagraphs 1 and 2, respectively.
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