• Font Size：
  • S
  • M
  • L

Relevant Laws

Title：Standards Governing the Establishment of Securities Firms (2021.05.06)
Article 4     The promoters of a securities company shall be disqualified should any of the following circumstances apply:
  1. Where the person is finally convicted of having committed an offense against the internal/external security of the state, or is at large for such offenses pending the closing of the case.
  2. Where the person has been sentenced to imprisonment for 1 year or more for having committed fraud, breach of trust, misappropriation, or for having violated applicable laws or regulations governing the regulation of business and industry, and 2 years have not elapsed since the completion of the term of such imprisonment.
  3. Where the person is convicted of having committed embezzlement during his/here years of service as a government employee and 2 years have not elapsed since the completion of the term of imprisonment.
  4. Where the person is adjudicated bankrupt and his/her civil rights have not been restored; or when acting as a director, supervisor or manager for a juristic person who has been adjudicated bankrupt, and that the termination of bankruptcy proceedings has not exceeded 3 years, or the reconciliation to resolve his/her bankruptcy has not been fulfilled.
  5. Where there is an event causing serious loss of good credit standing, and time has not been settled or 2 years have not elapsed since the settlement; or in the last 3 years any financial institution has refused to transact with the person or there is a record of loss of good credit standing.
  6. Where the person has no legal capacity, limited legal capacity, or is placed under assistance by court order.
  7. Where the person has been punished more severely than a fine under the Act or Futures Trading Act, and that the execution, probation, or pardon of such a judgment has not exceeded 3 years.
  8. Where 3 years have not elapsed since the person has been dismissed or replaced of his duties by the FSC.
  9. Where the person has, as supported by facts, engaged in or been involved in other bad faith or inappropriate activities, demonstrating unsuitability to work in the securities industry.
    Where the promoter is a juristic person, the provisions of the preceding paragraph shall apply mutatis mutandis to any representative of or any designated individual executing business for the juristic person.
Article 7     In filing an application with the FSC for approval, the promoters of a securities firm shall according to the type of business which it operates, deposit the amount prescribed below with the bank designated by the FSC:
  1. A securities underwriter: NT$40 million.
  2. A securities dealer: NT$10 million.
  3. A securities broker: NT$50 million. However, if the securities broker will operate only the following business, the amount shall be NT$10 million:
    1. Operates only equity crowdfunding business.
    2. Operates only brokerage business for trading and exchanging beneficial certificates of funds.
    The deposit prescribed in the preceding paragraph may be substituted by government bonds or financial bonds.
    The fund deposited in compliance with paragraph 1 shall not be removed before the company deposits the operation bond and obtains the incorporation registration; for a company whose application for the permit is rejected or whose permit is revoked, the fund may be removed after the FSC informs the company.
Article 8     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:
  1. A securities dealer: the linkage of the host computer or the terminal.
  2. 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.