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Article 26
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A securities firm applying for the permit to establish branch units or representative offices overseas or a financial institution with approval to concurrently operate securities business applying for the permit to concurrently operate securities business by its overseas branch units shall submit all of the following documentation to the FSC:
- Application for establishment of the branch unit or representative office.
- Articles of incorporation or equivalent documentation.
- A business plan: for the establishment of branch units, the plan shall specify the principles of business operation by its overseas branch units, the division of internal organization, the employment of personnel, the description of facilities, and its financial projection for the next 3 years; for the establishment of representative offices, the plan shall specify the organization of and affairs to be dealt with by its representative offices.
- The meeting minutes of the Board of directors.
- The system of internal control required under Article 11 (including that of the overseas branch units or representative offices).
- For the establishment of branch units, a feasibility assessment report must be submitted, specifying: the factors in the choice of the location for establishment; provisions of acts and regulations regarding matters such as local restrictions applying to foreign securities firms with respect to application procedures, review standards, business operations, and whether the competent authority of the home country may collect and inspect information on the financial and operational condition of the branch unit; self-assessment describing the compliance of the application case with local acts and regulations, operational risk assessment and benefit analysis.
- Other documents that the FSC may require.
If the business that would be handled, under local securities acts and regulations and customary business practices, by the overseas branch unit that the securities firm is applying to establish surpasses the business items of the head office, all of the following documents shall be submitted in addition to the documents in the preceding paragraph:
- Business item particulars: including the products to be handled, types of transactions, and trading counterparts and markets.
- Local acts and regulations that must be complied with when engaging in such business.
- Internal control and risk management plan.
- Legal opinion by a lawyer.
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