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Provision for Consolidating the "Business License for a Bank Concurrently Engaging in Trust Business" Registration Items into the "Banking Business License"
17 December 2004
Letter Ref. Jin-Kuan-Yin-(IV)- 0934000841
Financial Supervisory Commission, Executive Yuan
Subject:
It is hereby provided that the registration items of the "Business License for a Bank Concurrently Engaging in Trust Business" are to be consolidated into the "Banking Business License." Please be advised and inform all association members, and proceed in accordance with the following Statement:
Statement:
1. According to section 1.4.2.2 of the Regional Financial Service Center Promotion Plan's Financial Service Industry Development Program and Action Plan (Task Assignment Table) discussed and adopted at the National Service Industry Development Conference, "To concurrently engage in trust business, a bank shall now need only a permit; issuance of a separate license shall no longer be required."
2. A trust enterprise shall submit the "Business License for a Bank Concurrently Engaging in Trust Business" and "Banking Business License" to the Commission by the end of February 2005 for consolidation of the registration; the Commission will issue a separate consolidated "Banking Business License" without charging an additional official license fee.
3. The business items specified on the "Business License for a Bank Concurrently Engaging in Trust Business" currently in effect shall be registered in the Internet registration system of the Banking Bureau of the Financial Supervisory Commission. If new business items are subsequently to be added, after receiving the approval letter from the Commission, registration of the new business items shall be completed within the prescribed time period; prior to registration, both the general manager and compliance officer shall verify that the business items to be registered comply with laws and regulations. Trust business shall be commenced only after registration is completed. In addition, a trust enterprise to which incentive measures apply under the Measures to Accelerate the Reduction of Non-Performing Loans of Domestic Banks shall not carry out registration procedures until after the effective date of the automatic approval notice it receives in writing from the Commission.
4. A trust enterprise that concurrently engages in securities investment trust business or securities investment consulting business shall, within six months from the date on which it receives the permit from the Commission, prepare the documents required under Article 22 of the Standards Governing the Establishment of Securities Investment Trust Enterprises and Articles 19 and 22 of the Standards Governing the Establishment of Securities Investment Consulting Enterprises and also shall comply with the requirement that the net worth per share is not less than the par value based on the most recent financial report audited and certified by a certified public accountant (CPA), and carry out application procedures after the general manager and the compliance officer have both given verification. If a trust enterprise does not effect registration within the aforesaid time limit, the Commission may revoke its permit for concurrent operation. However, if it has legitimate reason, it may, prior to the expiration of the time limit, apply to the Commission for a three-month extension, on a once-only basis.
5. In addition to ensuring the accuracy of the registration information, a trust enterprise shall also preserve the original (or a photocopy) of the letter of approval from the Competent Authority for operation of the newly added business items and relevant required documents in a segregated file for reference by examination personnel.
6. These provisions shall be implemented beginning from January 2005. A trust enterprise also shall register the manager of the dedicated trust department on the Financial WEB Service System of the Banking Bureau of the Commission by the end of February 2005.
7. The Letter Ref. Tai-Tsai-Rong-(I)- 90731368 announced by the Ministry of Finance on 20 March 2001 is no longer applicable. |