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Article 3
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A securities firm that applies to conduct securities business money lending shall possess the qualifications listed below:
- In the most recent financial report audited and certified by a certified public accountant (CPA), its net worth per share is not lower than par value, and its financial condition is in compliance with the Regulations Governing Securities Firms.
- Its regulatory capital adequacy ratio has not been lower than 150 percent in the half-year prior to the application date.
- It has not been subject to any warning sanction imposed by the competent authority under Article 66, subparagraph 1, of the Act in the past 3 months.
- It has not been subject to any sanction imposed by the competent authority ordering dismissal of a director, supervisor, or managerial officer of the securities firm, or any disposition to dismiss and replace its responsible person or other relevant personnel in the most recent half year.
- It has not been subject to any sanction imposed by the competent authority requiring the suspension of business in the past year.
- It has not be subject to any sanction imposed by the competent authority voiding any portion of its business permission in the past two years.
- It has not been subject to any sanction imposed by the TWSE, TPEx, or the Taiwan Futures Exchange Corporation pursuant to the bylaws of those exchanges suspending or restricting its trading in the past year.
- Other qualifications as required by the competent authority.
Where a securities firm fails to meet a qualification in subparagraphs 3 through 7 of the preceding paragraph, but the violation has been specifically corrected and the correction is recognized by the competent authority, it may be exempted from the requirements of the subparagraph in question.
After a securities firm has been approved by the competent authority to conduct securities business money lending, if its regulatory capital adequacy ratio falls below 150 percent for 2 consecutive months, it shall suspend such lending, which may resume only after the securities firm is in compliance with regulations for 3 consecutive months and is approved by the competent authority; the same requirement shall apply to a securities firm that has already received approval to conduct such lending but has not yet commenced it.
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