Taiwan Stock Exchange - Rules & Regulations Directory

Article NO. Content

Title:

Directions for the Conduct of Wealth Management Business by Securities Firms 

Amended Date: 2020.09.10 (Articles 6 amended,English version coming soon)
Current English version amended on 2015.01.21 
4
    A securities firm may conduct wealth management business by means of trusts, and apply to concurrently operate money trusts and securities trusts. Except as provided by applicable laws or regulations or as otherwise provided by the Financial Supervisory Commission (FSC), the types of trust business shall be limited to the following:
  1. non-discretionary individual management.
  2. non-discretionary collective management.
  3. semi-discretionary individual management for which the principal designates the scope or method of use.
  4. semi-discretionary collective management for which the principal designates the scope or method of use.
    A securities firm shall manage trust assets separately from its proprietary assets and other trust assets. When a securities firm accepts, uses, and manages trust assets, the trust assets shall be represented under the name of trust assets of the securities firm. If the trust asset is money, the securities firm shall deposit it in a bank meeting the following qualifications:
  1. In the case of a domestic bank (including any subsidiary organized and registered by a foreign bank in the Republic of China pursuant to the Banking Act ), the common equity ratio, tier-one capital ratio, and capital adequacy ratio shall meet the following requirements:
    1. They may not be less than the minimum ratios specified under Article 5, paragraph 1, subparagraphs 1 and 2 of the Regulations Governing the Capital Adequacy and Capital Category of Banks.
    2. If any minimum ratio under the preceding item is raised by the FSC pursuant to Article 5, paragraph 2 of the Regulations Governing the Capital Adequacy and Capital Category of Banks, the bank's ratio may not be less than the raised ratio.
  2. In the case of a foreign bank's branch in the Republic of China, the credit rating of its head office shall meet the standard set out in Attachment 1.
    A securities firm conducting the type of business under paragraph 1, subparagraphs 3 and 4, and accepting NT$10 million or more from the customer in original trust assets, shall, pursuant to the Regulations Governing the Concurrent Operation of Trust Business, Standards Governing the Establishment of Securities Investment Consulting Enterprises, and Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises (hereinafter, "Regulations Governing the Conduct of Discretionary Investment Business"), apply to concurrently operate a securities investment consulting enterprise (SICE) that conducts discretionary investment business by means of trusts. A securities firm shall conduct the type of business under paragraph 1, subparagraph 4 in accordance with the Regulations Governing Collective Management and Utilization of Trust Funds, and related laws and regulations.
Data Source:Taiwan Stock Exchange - Rules & Regulations Directory
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