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Interpretation on the Specific Standards for Personnel Conducting Trust Business
4 November 2004
Order Ref. Jin-Kuan-Yin-(IV)-0938011837
1. The standards for personnel conducting trust business are not based on distinctions between business personnel and administrative support personnel or between trust business services and services auxiliary to trust business, but rather between whether or not a person actually carries on and engages in trust business. Personnel conducting trust business shall comply with the provisions of Article 24 of the Trust Enterprise Act as well as meet the qualification and possess the expertise or experience set forth in the Regulations Governing Required Qualifications for Responsible Persons and Required Trust Expertise or Experience for Operating and Managerial Personnel of Trust Enterprises.
2. The following personnel do not fall within the scope of personnel conducting trust business under Article 28 of the Banking Act or personnel operating and administering trust business under Article 24 of the Trust Enterprise Act:
(1) Personnel not actually carrying on and engaging in the business activities set out in Articles 16 and 17 of the Trust Enterprise Act, such as personnel charged solely with general affairs, personnel administration, mailing, correspondences with correspondent banks, phone receptionist service, or driving service.
(2) Personnel charged solely with receipt/dispatch, typing, and arrangement of documents and not participating in decision-making with respect to document content nor providing external consultation or inquiry answering services.
(3) Temporary personnel providing logistic services in large-batch stock certification.
3. Personnel conducting trust business and personnel operating and administering trust business are bound by the confidentiality obligation in Article 28, paragraph 4, of the Banking Act. Other banking personnel not falling within such scope also are bound by the confidentiality obligation in Article 48, paragraph 2, of the Banking Act. Both types of personnel, in keeping with the intent of the Regulations Governing Business Scope and Risk Management for Banks Operating Trust or Securities Business and the Regulations Governing Risk Management for Banks Operating Trust Business, may not engage in any conduct that involves a conflict of interest or otherwise prejudices client rights or interests. A bank shall also adopt guidelines for information confidentiality and access authorization. |