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Article 19
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A sub-distributor shall meet the following requirements:
1. Have net worth per share of not less than par value according to the most recent CPA audited and certified financial report;
2. Have not within the past two years been subject, due to its operation of offshore funds or securities investment trust fund business, to a disposition under Article 103, subparagraph 2, of the Securities Investment Trust and Consulting Act, Article 66, subparagraph 2, of the Securities and Exchange Act, Article 100, paragraph 1, subparagraph 2, of the Futures Trading Act, Article 44, paragraph 1, subparagraph 2, or paragraph 2, of the Trust Enterprise Act, or Article 61-1, paragraph 1, subparagraph 1 of the Banking Act, or a more severe disposition under such provisions. However, this restriction does not extend to a disposition by the FSC ordering dismissal of personnel or where there is already concrete improvement in the circumstances regarding its violation and such improvement is recognized by the competent authority.
3. Have associated persons to handle the offering and sale who meet the qualifications for associated persons prescribed in the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust and Consulting Enterprises;
4. Have such other qualifications as may be prescribed by the FSC.
Subparagraph 1 of the preceding paragraph does not apply to trust enterprises and securities brokers engaging in the business of investing, on behalf of customers, in offshore funds under non-discretionary trust of money agreements or foreign securities brokerage agreements prior to the issuance of these Regulations.
Where an associated person was already engaging in the business of investing, on behalf of customers, in offshore funds at a trust enterprises under non-discretionary trust of money agreements or at a securities broker under foreign securities brokerage agreements prior to the issuance of these Regulations, and such associated person does not meet the qualifications prescribed in these Regulations, the person shall take corrective measures within one year from the date of issuance hereof; if the corrections have not been completed within that period, such person may not engage in business related to offshore funds.
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