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

REGULATIONS

MINISTRY OF FINANCE


From : Ministry of Finance ("MOF")

Date : June 27, 2003

Ref. No. : Tai-Tsai-Rong-(1)-Zi-0920025294


1. Banks (including credit cooperatives), securities firms, insurance companies meeting the following requirements may apply to the relevant competent authority for approval to jointly promote other business' products or provide relevant services by submitting evidence that the applicant meets requirements, minutes of a board of directors meeting (a foreign company's Taiwan branch may submit a consent letter from an authorized person at its head office) and a joint business promotion agreement:

(1) the financial condition, business, and internal control system of the promoting enterprise's own business is sound; and

(2) personnel conducting joint promotion of products or providing relevant services meet the professional qualification(s), conditions, or licensing requirements prescribed by relevant laws and regulations promulgated by the promoted business' competent authority and all registration procedures required to be completed prior to commencement of such activities have been done.

2. The promoted business' products eligible for joint promotion or relevant services as provided above are as follows:

(1) insurance products:

a. promotion of insurance products approved by MOF; and

b. collection of documents related to the insurance business.

(2) securities products:

a. acting as an agent to promote, sell, and repurchase domestic mutual funds;

b. collecting documents for transfer agents (the business scope of transfer agents is prescribed in Article 1-1 of "Criteria Governing Handling of Stock Matters by Public Companies");

(3) bank products:

a. promoting and transmitting of credit cards; and

b. collecting documents for banking business.

3. A promoting business' personnel jointly promoting a promoted business' products or providing relevant services shall make clear and inform customers as to the differences between the promoted products or services and those of the promoting enterprise, itself, and as to whether such products or services are covered by deposit insurance, security deposits/bonds or other relevant protection.

4. When jointly promoting a promoted business' products or providing relevant services, a promoting enterprise shall not disclose, transmit, or exchange customer information without the customer's prior written consent.

5. When a promoting enterprise promotes a promoted business' products or provides relevant services, such promoted business shall be done directly between the customer and the promoted enterprise and the promoted enterprise shall be responsible to perform the relevant obligations; provided, that in the event business personnel of the promoting enterprise cause damage(s) negligently or by activities beyond their authority, the promoting enterprise shall compensate the damage(s) caused to the promoted enterprise.

6. The guidelines for a promoting enterprise's personnel promoting a promoted enterprise's products or providing relevant services and the rights and obligations related thereto shall be handled in accordance with relevant rules as prescribed by the promoted enterprise's competent authority.