Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Chapter 2　　General Provisions – Operation and Management of Foreign Exchange Business

Section 1　　Application and Commencement of Foreign Exchange Business

Article 5 

Unless otherwise provided in these Regulations, a securities enterprise may engage in 
foreign exchange business only after its head office, or a branch within the territory 
of the Republic of China of a foreign securities enterprise, has submitted an 
application to the Bank and has been issued a letter of approval.

A securities enterprise shall report the date of business commencement to the Bank 
for record within seven (7) days after commencing its foreign exchange business.

A securities enterprise may apply to engage in all or some of the business categories
mentioned in the subparagraphs of Paragraph 1 in the preceding article, and the Bank 
willgrant approval to those business categories individually. The Bank may also 
prescribe other rules for business categories approved under Subparagraph 13 of the
same paragraph and article.

Securities enterprises shall not conduct any foreign exchange business without the 
approval of the Bank.

Article 6 
A securities enterprise shall submit a written application with the following 
documents when applying for approval to engage in foreign exchange business:
1.A photocopy of the certificate of security business license;
2.A photocopy of the document evidencing the approval of the FSC or the consent of 
　the Gretai Securities Market (GTSM) for the securities enterprise to engage in 
　the business;
3.A resolution of board of directors resolving to apply for the business or a letter 
　of authorization from the head office or regional command center of a foreign 
　securities enterprise; and
4.A statement of regulatory compliance.
When a securities enterprise applies to engage in foreign exchange businesses 
provided in Subparagraphs 2 ~ 5, Paragraph 1 of Article 4 herein, it shall 
simultaneously apply for a foreign currency risk upper limit and exclusion of
overseas long-term equity investment, real estate and equipment from such limit.
This does not apply to authorized foreign exchange banks (hereinafter referred 
to as "authorized banks") concurrently engaging in securities business. 
When there is change to the approved foreign currency risk upper limit and exempt 
items mentioned in the preceding paragraph, a securities enterprise shall submit
a FSC approval document or other relevant documents to the Bank for consent.

Article 7   
A securities enterprise applying for foreign exchange business will be granted a 
designated period for providing supplementary information or making corrections if 
the documentation or information submitted were found to be incomplete or 
insufficient. The Bank may reject the application if supplementary information or 
corrections are not submitted within the designated period.

Article 8  
The Bank may reject a securities enterprise’s application for foreign exchange 
business in the event of any of the following:
1.Qualifications of the applicant do not comply with the requirements;
2.A high number of errors found in the declarations, reports or forms prepared by the 
　applicant;
3.The applicant had an incident in the past year where the applicant had seriously 
　violated the provisions of these Regulations or other relevant provisions of the 
　Bank, or was asked by the Bank to act, but failed to rectify the situation within
　the period specified by the Bank; or
4.There is other evidence indicating that the applicant has a situation that hinders 
　sound operations of the business, or that the applicant is unable to meet financial 
　policy requirements.