| 4 | 4. Banks that apply to set up business trial operations in the Zone must meet the following criteria:
(1) Approved by the FSC to conduct high-asset business and have commenced operations.
(2) Signed a letter of intent on cooperation with the local government of the Zone and obtained a certificate issued by the local government to set up operations in the Zone. |
| 5 | 5. The recipients of banks' services in the Zone are limited to high-asset customers (both domestic and foreign). The term "high-asset customers" referred to herein is defined in accordance with Article 3 of the "Regulations Governing Banks Conducting Financial Products and Services for High-Asset Customers". |
| 6 | 6. Banks may apply for the following business trial items and exemptions for offshore banking business, which are limited to offshore high-asset customers:
(1) Trial wealth management businesses:
i. Banks' offshore banking units (OBU) conduct agency business of foreign bonds or commission agency, brokerage, and agency business of other foreign currency denominated financial products approved by the competent authority. They may also trade foreign bonds in the bank's own name with the consent of the customer.
ii. Banks' OBUs act as securities introducing broker, opening omnibus accounts with domestic securities firms in the bank's own name, and placing orders on behalf of customers for foreign securities other than those specified in the preceding item (e.g., stocks and ETFs).
iii. Banks' OBUs may sell foreign currency funds and private equity funds through agency collection and payment services after signing contracts with issuers of foreign currency funds and private equity funds not traded on the centralized market, and may process subscriptions in the name of the bank with the consent of its customer.
(2) Policy and premium financing secured by insurance contracts of high-asset customers.
(3) Lombard lending secured with the financial assets of high-asset customers with the scope of collateral limited to the financial assets held by the customers themselves.
(4) Family office businesses, including consulting for setting up family offices, financial commodity investment (including alternative investments) and financing, succession and estate consulting, trust services, insurance services, philanthropy consulting, wealth management consulting (including legal, tax and risk management), and other related businesses.
(5) OBUs and offshore securities units (OSUs) and the offshore insurance units (OIUs) may carry out joint marketing, collaborative promotion, or joint account opening operations:
i. Where the customer signs a contract or provides express written consent, the OBU may provide the customer's account opening information to the OSU and OIU, and assist the customer in OSU and OIU account opening procedures, or the use of the relevant transactions.
ii. Sales personnel may solicit and recommend OSU and OIU products, provided that they meet the professional qualifications of each industry.
(6) Article 23-1 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" regarding the pre-sale reviews of financial products does not apply to the sales procedures for high-asset customers designating the purchase of unlisted financial products through trusts.
(7) The maximum lending ratio of a loan secured by beneficial rights of self-benefit specific money trusts is not limited to 50%, and repledging is permitted.
(8) Other business trial items of offshore banking business. |
| 7 | 7. Banks may apply for the following business trial items and exemptions for high-asset business:
(1) Banks may sell securities investment trust funds and offshore funds in the nature of a securities investment trust fund through agency collection and payment services, and may process subscriptions in the name of the bank with the consent of its customer.
(2) Banks may sell offshore funds that do not have the nature of a securities investment trust fund through agency collection and payment services after signing contracts with foreign asset management organizations or their designated institutions, and may process subscriptions in the name of the bank with the consent of its customer.
(3) Banks may, through trust business or agency collection and payment services, sell private equity funds that are either managed under trust by securities investment trust enterprises or established by their subsidiaries acting as general partners, after signing contracts with such enterprises. With the customer's consent, banks may also process subscription transactions in the name of the bank.
(4) Banks may, through trust business or agency collection and payment services, sell offshore funds that do not have the nature of a securities investment trust fund, as introduced by securities investment trust enterprises and securities investment consulting enterprises, after signing contracts with such institutions. With the customer's consent, banks may also process subscription transactions in the name of the bank.
(5) Policy and premium financing secured by insurance contracts of high-asset customers.
(6) Lombard lending secured with the financial assets of high-asset customers with the scope of collateral limited to the financial assets held by the customers themselves. However, if a customer uses financial assets denominated in NTD as collateral for a foreign currency loan, it cannot be converted into NTD.
(7) Family office businesses, including consulting for setting up family offices, financial commodity investment (including alternative investments) and financing, succession and estate consulting, trust services, insurance services, philanthropy consulting, wealth management consulting (including legal, tax and risk management), and other related businesses.
(8) Article 23-1 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" regarding the pre-sale reviews of financial products does not apply to the sales procedures for high-asset customers designating the purchase of unlisted financial products through trusts.
(9) The maximum lending ratio of a loan secured by beneficial rights of self-benefit specific money trusts is not limited to 50%, and repledging is permitted.
(10) Other business trial items of high-asset business. |
| 8 | 8. Domestic banks may apply for the following business trial items for cross-border financial services, and they must be processed by personnel from Zone operating units:
(1) Introducing or soliciting financial products and services from foreign branches to offshore high-asset customers, including soliciting the opening of bank accounts and the sale of financial products from foreign branches.
(2) Assisting foreign branches in handling the account opening procedures for offshore high-asset customers, including the delivery and verification of relevant documents, identity confirmation with the customer’s signature, and contract confirmation procedures.
(3) Processing the delivery and confirmation of financial transaction documents or the transmission of transaction instructions for customers of foreign branches.
(4) When personnel from foreign branches return to Taiwan, they may provide services specified in the preceding three subparagraphs to offshore high-asset customers when they are accompanied by personnel from Zone operating units. |
| 9 | 9. Banks that apply to set up business trial items and exemptions in the preceding three points shall submit the following documents, and the provisions in Point 4 of the "Operation Directions of Financial Institutions Applying for Business Trial" do not apply:
(1) The minutes containing board resolutions, but branches of foreign banks in Taiwan may use consent forms submitted by authorized personnel of the head office or the regional headquarters.
(2) The copy of a letter of intent on cooperation signed with the local government of the Zone and a certificate from the local government for setting up operations in the Zone.
(3) A business plan, which shall include the following information for each of the Zone business trial items:
i. The allocation of personnel, organizational structure and division of duties between the head office and the Zone operating unit.
ii. The services offered by the Zone operating unit (including other services that are not part of the Zone business trial items), and the itemized description of the scope of goods and services, recipients of services, transaction process, and evaluation of the expected benefits of the business items in the application for the Zone business trial items.
iii. The management mechanisms and operation guidelines of the Zone operating unit (including the control of the Zone operating unit over the business trial items, customer eligibility criteria, cooperation and management mechanisms with other branches of the bank, and the management mechanisms and internal control system of the head office for the Zone operating unit).
iv. Protection of customers' rights and interests and dispute handling mechanisms.
v. Mechanisms for handling Zone business trial items after the expiration of the trial period.
vi. Mechanisms and enhancement measures for anti-money laundering and countering the financing of terrorism.
(4) Legal compliance statement.
(5) The head office and the Zone operating unit shall have the capacity and allocation of international asset management service professionals, including the plan to employ domestic and overseas asset management professionals, and propose plan for attending professional asset management training courses organized by the institutions recognized by the competent authority in the next three years.
(6) The required detailed information for each of the Zone business trial items is specified in Appendix 1. |
| 10 | 10. Banks applying for Zone business trial items shall comply with Article 4 of the "Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Banking Business and Other Financial Institutions Designated by the Financial Supervisory Commission". When launching new products or services or engaging in new business practices, they shall assess the money laundering or terrorism financing risks that may arise in relation thereto, and establish relevant risk management measures to mitigate those identified risks. They must also reference the related regulations established by the Bankers Association of the Republic of China, and establish anti-money laundering and counter terrorism financing mechanisms, which must include at least the governance model, customer due diligence (including the actual source of wealth), identification of customers with higher risks, ongoing monitoring, suspicious transaction reporting, and prevention of money laundering risks for tax purposes. |
Chapter 3 Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises
| 11 | 11. Securities investment trust enterprises and securities investment consulting enterprises that apply to set up business trial operations in the Zone must meet the following criteria:
(1) When applying for external asset management consulting business trial items, they must comply with Article 6 of the "Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises", and obtain permission from the FSC to provide discretionary investment services. They must also fill out applications for issuance of a new business license in accordance with Article 7 of the same Regulations.
(2) When securities investment trust enterprises and securities investment consulting enterprises apply for the business trial items for multi-channel sales of offshore funds that do not have the nature of a securities investment trust fund, they must meet the qualifications for the master agent specified in the "Regulations Governing Offshore Funds".
(3) Signed a letter of intent on cooperation with the local government of the Zone and obtained a certificate issued by the local government to set up operations in the Zone. |
| 12 | 12. Customers of business trial items offered by securities investment trust enterprises and securities investment consulting enterprises in a Zone must meet the criteria for high-asset customers specified in the Jin-Guan-Zheng-Tou No. 1130384919 order dated October 25, 2024. |
| 13 | 13. Securities investment trust enterprises (including securities investment trust enterprises that operate securities investment consulting businesses) may apply for business trial items for the following external asset management consulting services:
(1) For securities, offshore funds (including hedge funds), private equity funds, and other assets (e.g., real estate investments, gold, and minerals) that have not been approved or effectively registered by the FSC, the following services are provided:
i. Accept a customer's appointment to provide investment consulting services.
ii. Accept a customer's appointment to provide securities investment analyses and recommendations, and to execute transactions on the customer's behalf.
iii. Accept a customer's appointment to provide securities investment consulting services with the use of decision-making power.
iv. Accept a customer's appointment to provide securities investment consulting services with the use of decision-making power, and to execute transactions on the customer's behalf.
(2) Provide taxation, risk management, and insurance advisory services. |
| 14 | 14. Securities investment trust enterprises and securities investment consulting enterprises may apply for a business trial for multi-channel sales of offshore funds that do not have the nature of a securities investment trust fund by signing a mandate contract with a bank or securities firm located in the Zone for the operating unit of the bank or securities firm in the Zone to sell offshore funds that do not have the nature of a securities investment trust fund to high-asset customers. |
| 15 | 15. Securities investment trust enterprises and securities investment consulting enterprises that apply to set up business trial items in the preceding two points shall submit the following documents, and the provisions in Point 4 of the "Operation Directions of Financial Institutions Applying for Business Trial" do not apply:
(1) The minutes containing board resolutions.
(2) The copy of a letter of intent on cooperation signed with the local government of the Zone and a certificate from the local government for setting up operations in the Zone.
(3) A business plan, which shall include the following information for each of the Zone business trial items:
i. The allocation of personnel, organization, and division of duties between the head office and the Zone operating unit.
ii. The itemized description of the scope of services, operation principles, and evaluation of the expected benefits of the business items in the application for the Zone business trial items.
iii. The management mechanisms and operation guidelines of the Zone operating unit (including the control of the head office or Zone operating unit over the business trial items, customer eligibility criteria, and the management mechanisms and internal control system of the head office for the Zone operating unit).
iv. Protection of customers' rights and interests and dispute handling mechanisms.
v. Mechanisms for handling Zone business trial items after the expiration of the trial period.
vi. Mechanisms and enhancement measures for anti-money laundering and countering the financing of terrorism.
(4) Internal control system for related business trials.
(5) Legal compliance statement.
(6) The head office and the Zone operating unit shall have the capacity and allocation of international asset management service professionals, including the plan to employ domestic and overseas asset management professionals, and propose plan for attending professional asset management training courses organized by the institutions recognized by the competent authority in the next three years.
(7) The required detailed information for each of the Zone business trial items is specified in Appendix 1. |
| 16 | 16. Securities investment consulting enterprises (including securities investment trust enterprises of securities investment consulting enterprises) may not keep custody of customers' assets when they carry out business trial items in Point 13. In addition, they must enter into an external asset management consulting agreement with the principal, which sets out the rights and obligations between it and the principal arising from the mandate. |
| 17 | 17. Securities investment trust enterprises and securities investment consulting enterprises applying for Zone business trial items shall comply with Article 3 of the "Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Securities and Futures Business and Other Financial Institutions Designated by the Financial Supervisory Commission". When launching new products or services or engaging in new business practices, they shall assess the money laundering or terrorism financing risks that may arise in relation thereto, and establish relevant risk management measures to mitigate those identified risks. They must also reference the related regulations established by the Securities Investment Trust & Consulting Association of the Republic of China, and establish anti-money laundering and counter terrorism financing mechanisms. |
| 18 | 18. Securities firms that apply to set up business trial operations in the Zone must meet the following criteria:
(1) Approved by the FSC to conduct OSU business and have commenced operations.
(2) Signed a letter of intent on cooperation with the local government of the Zone and obtained a certificate issued by the local government to set up operations in the Zone.
(3) Unless otherwise specified, the recipients of securities firms' services in the Zone are limited to offshore customers and high-asset customers. |
| 19 | 19. Securities firms may apply for the following business trial items for offshore securities business:
(1) When OSUs conduct agency business of foreign bonds, the buyers may be offshore customers and there is no special restriction on the foreign bonds.
(2) Foreign currency denominated structured notes issued by overseas subsidiaries of securities firms may be offered through OSUs to offshore customers, domestic high-asset customers, and domestic professional investors.
(3) OSUs may be appointed by foreign private equity firms to introduce offshore customers and domestic high-asset customers to invest in private equity funds denominated in foreign currencies.
(4) OSUs may sell offshore funds that do not have the nature of a securities investment trust fund to offshore customers and domestic high-asset customers.
(5) Article 23-1 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" regarding the pre-sale reviews of financial products does not apply to the sales procedures for offshore customers and high-asset customers designating the purchase of unlisted financial products through trusts.
(6) The maximum lending ratio of a loan secured by beneficial rights of self-benefit specific money trusts is not limited to 50%, and repledging is permitted, provided that the borrowed funds may not be exchanged for NTD and repayments may not be made with foreign currencies bought with NTD.
(7) OSUs, OBUs, and OIUs may carry out joint marketing, collaborative promotion, or joint account opening operations in accordance with Point 6, Subparagraph 5.
(8) Other business trial items of offshore securities business. |
| 20 | 20. Securities firms may apply for the following business trial items for high-asset business:
(1) Securities firms may sign contracts with securities investment trust enterprises and securities investment consulting enterprises to sell offshore funds that do not have the nature of a securities investment trust fund introduced by such enterprises, and may carry out the subscription operations in the name of the securities firm with the consent of the customers.
(2) Article 23-1 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" regarding the pre-sale reviews of financial products does not apply to the sales procedures for high-asset customers designating the purchase of unlisted financial products through trusts.
(3) The maximum lending ratio of an NTD loan secured by beneficial rights of self-benefit specific money trusts is not limited to 50%, and repledging is permitted.
(4) Securities firms that have obtained permission and issuance of license from the FSC to conduct securities investment consulting business and discretionary investment services in accordance with the "Standards Governing the Establishment of Securities Investment Consulting Enterprises" may apply for business trial items in Point 13.
(5) Other business trial items of high-asset business. |
| 21 | 21. Domestic securities firms may apply for the following business trial items for cross-border financial services:
(1) Introducing or soliciting financial products and services from foreign subsidiaries to offshore high-asset customers, including soliciting the opening of securities accounts and the sale of financial products from foreign subsidiaries.
(2) When personnel from foreign subsidiaries return to Taiwan, they may provide services specified in the preceding subparagraph to offshore high-asset customers when they are accompanied by personnel of Zone operating unit. |
| 22 | 22. Securities firms that apply to set up business trial items in the preceding three points shall submit the following documents, and the provisions in Point 4 of the "Operation Directions of Financial Institutions Applying for Business Trial" do not apply:
(1) The minutes containing board resolutions.
(2) The copy of a letter of intent on cooperation signed with the local government of the Zone and a certificate from the local government for setting up operations in the Zone.
(3) A business plan, which shall include the following information for each of the Zone business trial items:
i. The allocation of personnel and organization, between the head office and the Zone operating unit.
ii. Description of the scope of services, operation principles, and evaluation of the expected benefits of each of the Zone business trial items applied.
iii. The management mechanisms and operation guidelines of the Zone operating unit (including the control of the Zone operating unit over the business trial items, customer eligibility criteria, and the management mechanisms and internal control system of the head office for the Zone operating unit).
iv. Protection of customers' rights and interests and dispute handling mechanisms.
v. Mechanisms for handling Zone business trial items after the expiration of the trial period.
vi. Mechanisms and enhancement measures for anti-money laundering and countering the financing of terrorism.
(4) Internal control system for related business trials.
(5) Legal compliance statement.
(6) The required detailed information for each of the Zone business trial items is specified in Appendix 1. |
| 23 | 23. Securities firms applying for Zone business trial items shall comply with Article 3 of the "Regulations Governing Internal Audit and Internal Control System of Anti-Money Laundering and Countering Terrorism Financing of Securities and Futures Business and Other Financial Institutions Designated by the Financial Supervisory Commission". When launching new products or services or engaging in new business practices, they shall assess the money laundering or terrorism financing risks that may arise in relation thereto, and establish relevant risk management measures to mitigate those identified risks. They must also reference the related regulations established by the Taiwan Securities Association, and establish anti-money laundering and counter terrorism control mechanisms. |
| 24 | 24. Insurance enterprises that apply to set up business trial operations in the Zone must meet the following criteria:
(1) Approved by the FSC to conduct wealth management business or offshore insurance unit business and have commenced operations.
(2) Signed a letter of intent on cooperation with the local government of the Zone and obtained a certificate issued by the local government to set up operations in the Zone. |
| 25 | 25. The recipients of insurance enterprises' services in the Zone are limited to high-asset customers and OIU customers. The term "high-asset customers" referred to herein is defined as those that meet the qualifications for high-asset customers in the "Directions for Life Insurance Companies Engaging in Wealth Management Business". |
| 26 | 26. Insurance enterprises may apply for the following business trial items under Wealth Management Business and offshore insurance business:
(1) Wealth Management Business:
i. Multi-payment health insurance policies payable in foreign currencies.
ii. Insurance products that are not eligible for the minimum ratio of death benefit to policy value reserve (policy account value) for life insurance products.
(2) Offshore Insurance Business: OIUs, OBUs, and OSUs may carry out joint marketing, collaborative promotion, or joint account opening operations in accordance with Point 6, Subparagraph 5. |
| 27 | 27. Insurance enterprises that apply to set up business trial items and exemptions in the preceding point shall submit the following documents, and the provisions in Point 4 of the "Operation Directions of Financial Institutions Applying for Business Trial" do not apply:
(1) The minutes containing board resolutions.
(2) The copy of a letter of intent on cooperation signed with the local government of the Zone and a certificate from the local government for setting up operations in the Zone.
(3) A business plan, which shall include the following information for each of the Zone business trial items:
i. The allocation of personnel, organizational structure and division of duties between the head office and the Zone operating unit.
ii. The services offered by the Zone operating unit (including other services that are not part of the Zone business trial items), and the itemized description of the scope of goods and services, recipients of services, transaction process, and evaluation of the expected benefits of the business items in the application for the Zone business trial items.
iii. The management mechanisms and operation guidelines of the Zone operating unit (including the control of the Zone operating unit over the business trial items, customer eligibility criteria, cooperation and management mechanisms with other branches of the insurance enterprise, and the management mechanisms and internal control system of the head office for the Zone operating unit).
iv. Protection of customers' rights and interests and dispute handling mechanisms.
v. Mechanisms for handling Zone business trial items after the expiration of the trial period.
vi. Mechanisms and enhancement measures for anti-money laundering and countering the financing of terrorism.
(4) Legal compliance statement.
(5) The required detailed information for each of the Zone business trial items is specified in Appendix 1. |
| 28 | 28. Insurance companies applying for Zone business trial items shall comply with Article 4 of the "Regulations Governing Implementation of Internal Control and Audit System for Anti-Money Laundering and Countering Terrorism Financing of Insurance Companies, Post Offices Engaging in Simple Life Insurance Business and Other Financial Institutions Designated by the Financial Supervisory Commission". When launching new products with policy value reserve or cash value or monetary services, or engaging in new business practices, they shall assess the money laundering or terrorism financing risks that may arise in relation thereto, and establish relevant risk management measures to mitigate those identified risks. They must also reference the related regulations established by the Life Insurance Association of the Republic of China, and establish anti-money laundering and counter terrorism financing mechanisms. |
| 29 | 29. Zone business trial items must be processed by the Zone operating unit of the respective financial institution. |
| 30 | 30. Financial institutions must verify that its business personnel have obtained the relevant business qualification documents before the opening of the operating units in the Zone. |
| 31 | 31. When financial institutions apply to the competent authority of the industry for business trials in the Zone, and the business trial project item involves foreign exchange, banking, securities, or insurance business, a copy of the application documents must be submitted to the Central Bank, Banking Bureau, Securities and Futures Bureau, or Insurance Bureau of the FSC. The competent authority of the industry shall consult the opinions of these government institutions. |
| 32 | 32. The list of administrative rules and regulations, interpretation letters, self-regulatory regulations of the associations of financial institutions, or regulations of related entities that do not apply to the business trial items in the Zone during the trial period for financial institutions approved by the FSC is provided in Appendix 2. |
| 33 | 33. In principle, the period for the business trial of the financial institution in the Zone shall be six months to one year. The FSC may stop or extend the business trial based on the circumstances of the business trial. |
| 34 | 34. Financial institutions shall report the results of the business trial to the FSC within three months after the end of the business trial. If the results of the operating units and business trial items in the Zone show that they have positive effects on market development, the FSC shall propose amendments to the relevant laws and regulations, or invite the associations of financial institutions, related entities, and other relevant parties to review and amend the laws and regulations. |