Data Source:Laws and Regulations Retrieving System of the Banking Bureau

Interpretation on Whether a Person Who Is Concurrently a Director and the General Manager of a Bank May Concurrently Serve as a Director Who Is a Supervisory Personnel for Purposes of the Requirement in Article 9 of the Regulations Governing Required Qualifications for Responsible Persons and Required Trust Expertise or Experience for Operating and Managerial Personnel of Trust Enterprises That at Least One Director and One Supervisor Shall Meet the Requirements Set Out in Article 12 Thereof

5 March 2003

Letter No. Tai-Cai-Rong-(IV)-0928010315

Subject: Response in connection with a letter from the Bank of Taiwan requesting an interpretation on whether a person who is concurrently a director and the general manager of a bank may concurrently serve as a director who is a supervisory personnel for purposes of the requirement in article 9 of the Regulations Governing Required Qualifications for Responsible Persons and Required Trust Expertise or Experience for Operating and Managerial Personnel of Trust Enterprises that at least one director and one supervisor shall meet the requirements set out in Article 12 thereof. Please be advised and notify all association members.

Statement:

1. This is in response to the 8 January 2003 letter (ref. Jhong-Tuo-Mi-920018) from the Trust Association of ROC forwarded by the Banking Bureau.

2. Article 9 of the Regulations Governing Required Qualifications for Responsible Persons and Trust Expertise or Experience Requirements for Operating and Managerial Personnel of Trust Enterprises (the "Experience Regulations") makes the provision based on Article 24, paragraph 3 of the Trust Enterprise Act, that at least a certain percentage of directors and supervisors of a bank that concurrently operates trust business shall have expertise or experience in the operation and administration of trust enterprises. A bank that concurrently operates trust business satisfies Article 9 of the Experience Regulations if it has at least one director and one supervisor possessing trust expertise or experience. If the director with trust expertise or experience also concurrently serves as the general manger or in another position, this does not constitute a violation of Article 9.