Article Content
Section 1 Representative Offices
| Article 20 | A Taiwan bank that meets the following requirements may apply to the Competent Authority for approval to establish a representative office in Mainland Area:
1. The bank is in compliance with the law, is soundly managed and has not been subject to any disciplinary action, or has been subject to disciplinary action but specific remedial actions have been taken therefor and accepted by the Competent Authority within three (3) years prior to application;
2. The bank’s ratio of equity capital to risk-weighted assets was 10% or higher during the latest fiscal half year;
3. The bank has international financial knowledge and experience; and
4. The bank has established a branch and operated business in a member country of The Organization For Economic Cooperation And Development (OECD) for two years or longer.
If a third-area subsidiary bank meets the requirements set out in subparagraphs 1 to 3 of the preceding paragraph, its Taiwan parent company may apply to the Competent Authority for approval for said third-area subsidiary bank to establish a representative office in Mainland Area. |
| Article 21 | A Taiwan bank intending to establish a representative office in Mainland Area shall submit the following documents to the Competent Authority for approval:
1. Application;
2. A feasibility study;
3. Minutes of the board resolution;
4. Financial reports for the last three (3) years;
5. A calculation worksheet for its ratio of equity capital to risk-weighted assets for the latest fiscal half year;
6. Documents verifying that the proposed representative meets the qualification requirements set forth in Paragraph 2 hereof; and
7. Such other information or documents as may be required by the Competent Authority.
The proposed representative mentioned in the preceding paragraph should have good moral character and professional leadership ability, and is free of the situations set forth in Article 3 of the Regulations Governing Qualification Requirements and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of Banks(referred to as the “Regulations Governing Qualification Requirements” hereunder), and complies with the provisions in Paragraph 3 Article 3-1 of the same Regulations.
When a third-area subsidiary bank intends to establish a representative office in Mainland Area, its Taiwan parent company shall submit the following documents to the Competent Authority for approval:
1. Application;
2. A feasibility study;
3. Minutes of the board resolution of both the parent company and the third-area subsidiary bank;
4. A calculation worksheet for the ratio of equity capital to risk-weighted assets of the third-area subsidiary bank for the latest fiscal half year; and
5. Such other information or documents as may be required by the Competent Authority. |
| Article 22 | A Taiwan bank must have obtained the approval of the Competent Authority before applying to [the financial authority in] Mainland Area for the establishment of a representative office. When the Taiwan bank replaces its proposed representative, the bank shall submit documents verifying that the new representative meets the qualification requirements set forth in Paragraph 2 of the preceding article to the Competent Authority for approval; when the Taiwan bank changes the planned address of its representative office, the bank shall submit relevant documents to the Competent Authority for recordation.
The Taiwan bank shall promptly inform the Competent Authority after obtaining approval from the financial authority in Mainland Area [to establish a representative office] and submit the following documents to the Competent Authority for recordation prior to setting up the representative office:
1. An approval letter from the financial authority in Mainland Area;
2. Planned date of establishment and detailed address [of the representative office]; and
3. Name of the representative appointee.
A Taiwan bank shall comply with the following provisions after it has established a representative office in Mainland Area:
1. If the representative office has a material contingent or fraud incident, the bank shall handle and report it according to the provisions set forth by the Competent Authority;
2. The bank shall input all relevant information on the representative office into an information reporting system designated by the Competent Authority and update the information when changes occur;
3. Before replacing its representative, the bank shall submit documents verifying that the newly appointed representative meets the qualification requirements set forth in Paragraph 2 of the preceding article to the Competent Authority for approval; and
4. Before changing the address of its representative office, the bank shall report to the Competent Authority for recordation.
When a Taiwan bank intends to close its representative office in Mainland Area, the bank shall first obtain approval from the Competent Authority before applying to the financial authority in Mainland Area, and promptly inform the Competent Authority after obtaining approval from the financial authority in Mainland Area [to close a representative office]. The Taiwan bank shall also submit the approval letter from the financial authority in Mainland Area and the planned closing date to the Competent Authority for recordation before closing the representative office. |
| Article 23 | A Taiwan parent company must have obtained the approval of the Competent Authority before its third-area subsidiary bank may apply to [the financial authority in] Mainland Area for the establishment of a representative office. The Taiwan parent company shall promptly inform the Competent Authority after obtaining approval from the financial authority in Mainland Area [to establish a representative office]. The preceding provisions shall apply when the third-area subsidiary bank closes its representative office in Mainland Area.
Before the representative office referred to in the preceding paragraph is established in Mainland Area, the Taiwan parent company shall submit the same documents as those mentioned in Subparagraphs 1 and 2, Paragraph 2 of the preceding article to the Competent Authority for recordation; after the representative office is established, the Taiwan parent company shall comply with the provisions in Subparagraphs 1 and 2, Paragraph 3 of the preceding article. |
| Article 24 | A representative office in Mainland Area may engage in the following activities and shall comply with the regulations in Mainland Area:
1. Researching finance-related business intelligence;
2. Collecting finance-related information; an
3. Other liaison activities. |