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DIRECTIONS MINISTRY OF FINANCE
From : Ministry of Finance
Date : December 31, 2003
Ref. No. : Tai-Tsai-Rong-(1)-0921000796
Attachment:
1.The standard's for "sound financial condition, business and internal control system" as used in Item 1 of our Ministry's letter, dated June 27, 2003 (Ref. No.: Tai-Tsai-Rong-(1)-0920025294), are:
(1) Securities Firms:
(a) The firm has not been sanctioned by the Securities and Futures Commission in accordance with of Article 66, item 2 of the Securities Exchange Act within the most recent half year;
(b) The firm's capital adequacy ratio is not less than 150% at time of application; and
(c) The firm had no significant errors or unusual occurrences in internal control within the most recent one year
(2) Insurance Companies:
(a) The company has had no significant errors or unusual occurrences in internal control within the most recent one year
(b) The company's capital adequacy ratio has not been less than 100% during the most recent one year; and
(3) (c)The company has not been sanctioned by the this ministry in accordance with Article 149, Paragraph 2 or Paragraph 3 of the Insurance Act within the most recent half yearBanks (Credit Cooperatives):
(a) The entity's capital adequacy ratio is not less than 8% as at the end of the most recent half year;
(b) The entity has not been sanctioned by the this Ministry in accordance with Article 61-1, paragraph 1, items 1-5 or Article 62, paragraph 1, of the Banking Act, or Article 27, paragraph 1, of the Credit Cooperative Act within the most recent half year
(c) No significant error in internal control has occurred which impacted the sound financial business operations of the entity within the most recent one year
2. An institution such as bank, securities firm or insurance companies which acts on behalf of, or appoints, other entities to promote products or provide relevant services shall apply for approval the first time they do so. Thereafter, subsequent such actions shall not require separate approval. In an entity which has received an approval ceases to be qualified, the relevant competent authority shall write a letter to restrict such entity from expanding its joint promotion activity and send a copy of the letter to the regulator of the other cooperating entity(ies).
3. If businesses are promoting insurance products or providing relevant services in cooperation with insurance companies through insurance agents or insurance broker, the promoting entity shall sign a cooperation agreement with both the insurance company and the relevant insurance agent or insurance broker, and spell out the respective rights and obligations clearly. |