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Article NO. Content


Directions for the Conduct of Wealth Management Business by Securities Firms  CH

Amended Date: 2022.11.07 
32     With the exception of the type of business under Point 4, paragraph 1, subparagraph 4, which shall be conducted pursuant to the Regulations Governing Management and Utilization of Collective Investment Trust Funds, to conduct business set out in Point 2, paragraph 1, subparagraph 2 herein a securities firm shall submit the application, together with following documents, to the TWSE, which shall review them and forward a report to the FSC for its approval:
  1. Documentary proof that the securities firm meets the qualification requirements for conducting business set out in Point 2, paragraph 1, subparagraph 1 herein (not required if the securities firm is simultaneously applying for approval for that business).
  2. Articles of incorporation or equivalent documents.
  3. Documentary proof of the regulatory capital adequacy ratio.
  4. The CPA-audited and attested financial report for the most recent period.
  5. Documentary proof of the long-term credit rating.
  6. Documentary proof that the securities firm meets the qualification requirements for operating this line of business (proof that it has not been sanctioned by the FSC is not needed).
  7. Minutes of the meeting at which the board of directors passed the resolution to apply to operate this line of business.
  8. Documentary proof of the effectiveness of the internal control system and risk management culture, passed by resolution of the board of directors:
    1. The securities firm has specifically corrected any material defects in internal controls.
    2. The securities firm has properly handled customer complaint cases and maintains good quality in treating customers fairly.
    3. The board of directors and senior management personnel effectively implement corporate governance and take measures to enhance the effectiveness of the risk management culture.
  9. Business plan, with content including the following items:
    1. Business planning: the trust business activities, types of trust business, and operational procedures and risk management for operating this line of business.
    2. Accounting system.
    3. Internal control system and internal audit system.
    4. Matters concerning protecting the rights and interests of customers.
    5. Business operation capability and investment of resources: staffing and equipment assessment (including information systems), plans for professional talent development and training for the next three years, salary and compensation incentives and performance evaluation system.
  10. A list of personnel that operate and manage trust business, and documentary proof of their qualifications.
  11. A written statement of the non-existence of the circumstances listed in Article 2 of the Regulations Governing Expertise or Experience with respect to the responsible person.
  12. A template trust agreement.
  13. Other documents as required by FSC regulations.
    An ROC branch of a foreign securities firm intending to apply to conduct the business under the preceding paragraph shall file its application with the TWSE, which shall forward a report to the FSC, and shall furnish with the application a letter of consent from the board of directors of its head office, or a document signed by an entity or personnel authorized by the head office.