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

Section 12　　Wealth Management Business Involving Non-discretionary Money Trust

Article 48 
When a securities enterprise intends to engage in wealth management business by means 
of non-discretionary individually managed money trust with the underlying products 
denominated in foreign currencies (hereinafter referred to as “wealth management 
business involving non-discretionary money trust”), the securities enterprise shall 
apply to the Bank for approval by submitting documents provided in Article 6 herein and 
a business plan (including business description, business counterparties, framework of 
trust account, receipt/payment principles and filing of foreign exchange settlement). 
Securities enterprises that have been approved by the Bank to engage in wealth 
management business involving non-discretionary money trust that subsequently increase 
or decrease the number of branches to handle the business shall, within seven days 
after obtaining approval from the competent authority, report to the Bank for record.

Article 49  
When a securities enterprise engages in wealth management business involving 
non-discretionary money trust, related receipt/ payment shall be handled according 
to the following rules:
1.Foreign currency non-discretionary money trust: Receipt/payment of trust money and 
　repayment of trust principal and income between a securities enterprise and the 
　principal shall be made in foreign currency. The trust assets may only be invested 
　in foreign products or products denominated in foreign currency, and the foreign 
　currency funds may not be converted to NTD through exchange settlement. 
2.NTD non-discretionary money trust with investment in foreign products or products 
　denominated in foreign currency: 
(1)Receipt/payment of trust money and repayment of trust principal and income between
　 a securities enterprise and the principal shall be made in NTD. Proceeds from the 
　 sale of foreign product or products denominated in foreign currency shall be 
　 exchanged into NTD and deposited into the NTD trust asset deposit account – 
　 principal sub-account. Foreign currency deposits shall be used exclusively for 
　 settlement purpose. 
(2)When the purchase or sale of foreign product or product involving foreign exchange 
　 through the same trust account involve exchange settlement against NTD, the 
　 securities enterprise shall carry out gross settlement through an authorized bank 
　 without offsetting or settling on a net basis. However, for accounts receivable 
　 or payable arising from the purchase or sale of underlying assets or sale first 
　 and then buyback before the settlement of the sale through the same trust account
　 on the same date, the securities enterprise may, according to the principal's 
　 instruction, combine and net off all the received (paid) money in the same currency
　 and then exchange the net received (paid) amount into NTD. 

Article 50   

When a securities enterprise conducts wealth management business involving 
non-discretionary money trust, the qualifications of the principal shall meet the 
criteria set out in Subparagraph 2 of Point 9 and Subparagraph 4 of Point 10 of the 
Operating Directions.

When the trust assets are invested in foreign products or products denominated foreign
currency, such products must be denominated in foreign currency and not linked directly 
or indirectly domestic products.

There shall be no transfer of funds between the NTD and foreign currency 
non-discretionary money trust accounts of the same principal. And there shall 
be no transfer of funds between the discretionary money trust accounts of 
different principals.