| 2005.03.25 |
Regulations Governing Qualification Requirements for Responsible Persons of Banks
[Chinese]
|
Regulations Governing Qualification Requirements for Responsible Persons of Banks
(Amended per Order Jin-Kuan-Yin-(2)-Zi-No. 0942000079 dated 2005/03/25)
Article 1
These Regulations are set forth pursuant to Article 35-2 of the Banking Act.
Article 2
These Regulations shall apply to commercial banks, specialty banks, investment and trust companies, and foreign banks.
Article 3
A person having any of the following situations may not act as the responsible person of a bank:
1. Having limited legal capacity or is legally incompetent.
2. Having been convicted of a crime under the Organized Crime Act.
3. Having been sentenced to imprisonment for counterfeiting currency or valuable securities, misappropriation, fraud or breach of trust and the sentence has not been completed or ten (10) years have not elapsed since the date of sentence completion, the expiration of probation period, or the pardon of such punishment.
4. Having been sentenced to imprisonment for forging instruments or seals, offence against privacy, usury, impairing the rights of creditors or violating the Tax Collection Act, Trademark Act, Patent Act or other laws governing industrial or commercial activity and the sentence has not been completed or five (5) years have not elapsed since the date of sentence completion, the expiration of probation period, or the pardon of such punishment.
5. Having been sentenced to imprisonment for embezzlement and the sentence has not been completed or five (5) years have not lapsed since the date of sentence completion, the expiration of probation period, or the pardon of such punishment.
6. Having been sentenced to imprisonment for violating Banking Act, Financial Holding Company Act, Trust Enterprise Act, Act Governing Bills Finance Business, Financial Assets Securitization Act, Real Estate Securitization Act, Insurance Law, Securities and Exchange Act, Futures Trading Act, Securities Investment Trust and Consulting Act, Foreign Exchange Control Act, Credit Cooperatives Act, Agricultural Finance Act, Farmers’ Association Act, Fishermen’s Association Act, Money Laundering Control Act or other laws regulating financial activity, and the sentence has not been completed or five (5) years have not elapsed since the date of sentence completion, the expiration of probation period or the pardon of such punishment.
7. Having been adjudicated bankrupt, and rights and privileges have not been reinstated.
8. Being the responsible person of a legal entity at the time such legal entity was adjudicated bankrupt and five (5) years have not elapsed since the closure of the bankruptcy or the terms of bankruptcy settlement have not yet been fulfilled.
9. Having been denied service by the bills clearing house and the denial status has yet to be removed, or there remains a record of dishonored check(s) due to insufficient funds in three (3) years since the denial status has been removed.
10. Having an ongoing event that seriously damages his or her credit worthiness or five (5) years have not elapsed since the closure of such an event.
11. Five (5) years have not elapsed since being replaced or discharged from duties by order of the competent authority due to a violation the Banking Act, Financial Holding Company Act, Trust Enterprise Act, Act Governing Bills Finance Business, Financial Assets Securitization Act, Real Estate Securitization Act, Insurance Law, Securities and Exchange Act, Futures Trading Act, Securities Investment Trust and Consulting Act, Foreign Exchange Control Act, Credit Cooperatives Act, Agricultural Finance Act, Farmers’ Association Act, Fishermen’s Association Act, Money Laundering Control Act or other laws regulating financial activity.
12. Having been ordered to enter a reformatory or having been ordered to perform compulsory labor due to the offense of larceny or receiving stolen property and the sentence has not been completed or five (5) years have not elapsed since the sentence completion.
13. Acting as the responsible person of another bank, financial holding company, trust company, credit cooperative, credit department of a farmers’ (fishermen’s) association, bills finance company, securities firm, securities finance company, securities investment trust enterprise, securities investment consulting enterprise, futures company or insurance company (excluding insurance agencies or brokerages); provided that the restriction does not apply to the following:
(1) The responsible person of a bank may act as a director or supervisor of another bank or the responsible person of another entity as mentioned above, provided, that there is an investment relationship between the bank and the other bank/entity and the chairman or manager [of the bank] does not concurrently serve as the chairman or manager of the other bank/entity; the approval of the competent authority shall be obtained for purposes of acting as a director or supervisor of another bank;
(2) For purposes of merging or administering a distressed financial institution, the responsible person of a bank may serve as the chairman of such institution with the approval of the competent authority, provided, that in order to serve as the chairman of another bank, an investment relationship must exist between the bank and the [problem] bank;
(3) A bank, as a judicial person, is a director or supervisor of a holding company, and the responsible person of such bank who concurrently serves as the responsible person of such holding company may also serve as the responsible person of a subsidiary of such holding company, provided, that if such subsidiary is a bank, such person may only serve as a director or supervisor;
(4) If a bank is a shareholder of a financial holding company, its responsible person may serve concurrently as a director or supervisor of a subsidiary of such holding company; or
(5) The responsible person of a bank that is a subsidiary of a financial holding company may serve as the responsible person of such financial holding company and its other subsidiaries, provided, that a manager of the subsidiary bank may not act as a manager of another subsidiary [of the financial holding company] and the responsible person of the bank serves concurrently only as a director or supervisor of the other banking subsidiary of the financial holding company.
14. Factual evidence shows that the person has engaged in, or been involved in, other dishonest or improper activities which indicate that she/he is unfit to serve as a responsible person of a bank.
In the event that the government or a juristic person is a shareholder [of a bank], the preceding paragraph shall apply to its representative or other individual(s) designated by it to serve as a director(s) or a supervisor(s).
Article 4
The president of a bank shall have good moral character, the ability in leadership and efficient banking management, and meet one of following qualifications:
1. Having graduated from a domestic or foreign college or higher, or an equivalent and with at least nine (9) years of experience working in a bank(s) and at least three (3) years of experience working in the position of manager or higher or similar position in the head office of a bank(s) with good performance record.
2. Having at least five (5) years of experience working in a bank(s) and at least three (3) years of experience working in the position of vice president or higher or similar position of a bank(s) with good performance record.
3. Having other experiences sufficing to evidence the possession of leadership ability, professional banking knowledge or banking management capability to effectively manage the banking business.
A person may not hold the position of president or comparable position of a bank unless the competent authority has examined and approved the qualifications of such person.
Article 5
A bank’s vice president, assistant vice president, head office manager or personnel holding comparable position shall have good moral character, the ability in leadership and efficient banking management, and meet one of following qualifications:
1. Having graduated from a domestic or foreign college or higher, or an equivalent and with at least five (5) years of experience working in a bank(s) and having served in the position of assistant manger or higher or similar position in the head office of a bank(s) with good performance record.
2. Having at least three (3) years of experience working in a bank(s) and having served in the position of manager or higher or similar position in the head office of a bank(s) with good performance record.
3. Having other experiences sufficing to evidence the possession of professional banking knowledge or banking management capability to effectively manage the banking business, and having received a prior approval of the competent authority for such appointment.
The branch manager of a foreign bank in Taiwan or an officer in comparable position shall possess the qualifications specified in the preceding paragraph and may not hold office unless the competent authority has examined and approved his/her qualifications.
Article 6
A bank’s branch manager or personnel holding comparable position shall have good moral character, the ability in leadership and efficient banking management, and meet one of following qualifications:
1. Having graduated from a domestic or foreign college or higher, or an equivalent and with at least three (3) years of experience working in a bank(s) and having served in the position of junior manager or higher or similar position in the head office of a bank(s) with good performance record.
2. Having at least two (2) years of experience working in a bank(s) and having served in the position of assistant manager or higher or similar position in the head office of a bank(s) with good performance record.
3. Having other experiences sufficing to evidence the possession of professional banking knowledge or banking management capability to effectively manage the banking business, and having received a prior approval of the competent authority for such appointment.
Article 7
The spouse, relatives by blood within second degree of kinship or relatives by marriage within first degree of kinship of the supervisor of a bank may not hold a position of director or manager in the same bank.
The preceding paragraph also applies to the representative of the government or a juristic person.
Article 8
A bank’s board of directors is held responsible for the appointment of managers and making sure that the appointed managers meet the qualification requirements. The board of directors is also held responsible for overseeing the maintenance of qualifications by bank managers and the suitability of managers in their positions.
Article 9
The director or supervisor of a bank should be of good moral character. If the number of directors and supervisors of a bank is less than five persons, at least two of the directors and supervisors shall meet one of the qualifications set out below. If the number of directors and supervisors of a bank exceeds five, at least one more of the directors and supervisors for each additional four directors and supervisors shall meet one of the qualifications set out below. If a bank has managing director(s), at least two of the managing directors shall meet one of the following qualifications:
1. At least five (5) years of experience working in a bank(s) and having served in a position of vice president or higher or similar position in the head office of a bank(s) with good performance record;
2. At least five (5) years of experience working in financial administration or management and having held the position of civil service recommended appointment grade 8 or higher or equivalent with good performance record;
3. At least three (3) years of experience working in a bank(s) and having served in a position of manager in the head office or higher or in a similar position of a bank(s) with good performance record; or
4. Having other factual evidence to the possession of professional banking knowledge or banking management capability to effectively manage the banking business.
The chairman of a bank shall have one of the qualifications provided in the preceding paragraph. A bank shall submit the qualification documents of its chairman as well as directors and supervisors who meet the qualification set out in Subparagraph 4 of the preceding paragraph to the competent authority for approval within ten (10) days of their election. The competent authority may order the bank to make adjustment within a prescribed period of time if the qualification of the chairman or any of the elected directors or supervisors is disapproved.
Where a bank has question over the application of Subparagraph 4 of Paragraph 1 hereof to any of its directors or supervisors, the bank may seek the prior approval of the competent authority before electing the director or supervisor to the office.
Article 10
For a credit cooperative that has been approved by the competent authority to reorganize into a bank or merge with a bank, the experience of its personnel working in said credit cooperative shall be deemed experience working in a bank as provided in Articles 4 through 6 and Article 9 herein.
Article 11
To verify the qualifications of the responsible person of a bank, the competent authority may request the bank to submit necessary documents or data, or order the responsible person to make explanation in person within a prescribed period of time.
Article 12
If the responsible person of a bank has taken office prior to the amendment of these Regulations, and if such responsible person is also the responsible person of another institution non-complying with the amendment to Subparagraph 13, Paragraph 1 of Article 3 herein, such responsible person may continue to serve in such position until the expiry of term of office.
If the responsible person of a bank receives a promotion or takes office after the promulgation of these Regulations, the responsible person shall possess the qualifications set out herein. A responsible person who takes office without possessing the required qualification shall, ipso facto, be discharged.
If any of the events under Article 3 herein occurs after a responsible person takes office, the responsible person shall, ipso facto, be discharged from the office.
Article 13
Where the responsible person of a bank has any situation that should result in an ipso facto discharge according to the Regulations herein, the responsible person shall inform the bank immediately.
A bank should take proactive action after learning that its responsible person has a situation that should result in his/her ipso facto discharge, file a report with the competent authority, and notify the Ministry of Economic Affairs to revoke or cancel related registration.
Article 14
Any matters not provided for in Regulations herein shall be governed by the Banking Act, Company Act and other applicable laws.
Article 15
The Regulations herein shall become effective on the date of promulgation.