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Article 3
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A securities firm shall be established as a company limited by shares. The minimum paid-in capital for a securities firm, according to the type of business which it operates, shall be as follows:
- A securities underwriter: NT$400 million.
- A securities dealer: NT$400 million; if the securities dealer operates only the business of proprietary trading of security tokens (virtual currencies that have the nature of securities), the minimum paid-in capital shall be NT$100 million.
- A securities broker: NT$200 million. However, if the securities broker operates only the following business, the minimum paid-in capital shall be NT$50 million:
- Operates only equity crowdfunding business.
- Operates only brokerage business for trading and exchanging beneficial certificates of funds.
The minimum paid-in capital required in the preceding paragraph shall be fully collected by the promoters at the time of incorporation.
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Article 6
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The business floor and the facilities of a securities firm shall be in accordance with the standards prescribed by a securities dealers' association or the Taipei Exchange (TPEx); for a securities firm which engages in brokerage or proprietary trading business in the stock exchange, they shall also be in accordance with the floor and facilities standards prescribed by the Taiwan Stock Exchange Corporation (TWSE).
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Article 8
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Prior to filing an application with the FSC for approval to engage in brokerage or proprietary trading business in the stock exchange, the applicant shall receive the consent of computer linkage from the securities central depository enterprise and, according to the type of business which it operates, receive the consent of computer linkage from the stock exchange as required below:
- A securities dealer: the linkage of the host computer or the terminal.
- A securities broker: the linkage of the host computer or the terminal.
Prior to filing an application with the FSC for approval to engage in brokerage or proprietary trading business in the over-the-counter market by its head office and newly established branches, the applicant shall receive the consent of the computer linkage for its securities trading information from the TPEx.
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Article 11
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Securities firms shall establish a system of internal control referred to in Article 10, paragraph 1, subparagraph 4 in accordance with the Regulations Governing Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets and the regulations for establishing internal control systems by securities firms jointly prescribed by the TWSE and other related institutions.
Securities firms operating security token proprietary trading business or equity crowdfunding business shall handle their internal control system in accordance with applicable rules adopted by the TPEx. A securities firm that operates only security token proprietary trading business or equity crowdfunding business is not subject to the provisions of the preceding paragraph.
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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 15
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A financial institution which concurrently operates securities business shall allocate the operating capital in the amount same as that required under Article 3 hereof; if the paid-in capital of the said financial institution is insufficient to allocate the operating capital, a capital increase has to be made before the application.
A financial institution which concurrently operates securities business shall allocate operating capital through funds set aside especially for this purpose and unless governed by Article 102 of the Banking Act, may not use it for purposes other than securities business.
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