Chapter 4 Securities Firms |
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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. |
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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. |
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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. |
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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. |
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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. |