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Article 13
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In the case of a securities firm that conducts only equity crowdfunding business, the securities firm may not make any investment in any other enterprise, provided that this restriction does not apply to a securities firm participating in subscribing to stock of a company conducting equity crowdfunding on the securities firm's crowdfunding platform.
In the case of a securities firm that conducts only equity crowdfunding business, if the securities firm participates in subscribing to stock of a company conducting equity crowdfunding on the securities firm's crowdfunding platform pursuant to the preceding paragraph, it shall comply with the following:
- The total shares that it holds in any one company may not exceed 10 percent of the total shares of that company; furthermore the total cost of the shares that it holds in any company and that it holds in all companies respectively may not exceed 20 percent and 40 percent of the securities firm's net worth.
- The securities firm, with respect to its investment positions, shall adopt mechanisms for pre-investment decision making, post-investment management, and risk assessment.
In the case of a securities firm that conducts only equity crowdfunding business, if the securities firm participates in subscribing to stock of a company conducting equity crowdfunding on the securities firm's crowdfunding platform pursuant to the preceding two paragraphs, the counterparties to which the securities firm may subsequently transfer the stock shall be limited to investors who have previously participated in subscribing to stock of that crowdfunded company and institutional angels.
The term "institutional angel" in the preceding paragraph means an investor who meets any of the following conditions:
- A professional institutional investor, which means a domestic or foreign bank, insurance company, bills finance company, securities firm, fund management company, government investment institution, government fund, pension fund, mutual fund, unit trust, securities investment trust enterprise, securities investment consulting enterprise, trust enterprise, futures commission merchant, futures service enterprise, or other institution approved by the competent authority.
- A juristic person or fund that has shareholders equity exceeding NT$50 million according to its latest CPA-audited or reviewed financial report, and that has established a dedicated investment unit; however, the financial report of a juristic person outside of the Republic of China need not be CPA-audited or reviewed.
- A trust enterprise that has entered into a trust agreement with a settlor who meets the conditions set forth in the preceding two subparagraphs.
- A venture capital enterprise duly established in accordance with law.
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