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

Chapter 4　　Operation and Management of Renminbi Business

Article 51 

When the foreign exchange business of a securities enterprise involves Renminbi (RMB) 
denominated products or products issued in Mainland Area, the securities enterprise 
shall observe the provisions of Article 52 herein and the following rules, and 
relevant provisions in these Regulations shall also apply mutatis mutandis:

1.Unless otherwise provided by the Bank, securities enterprises may not conduct RMB 
　exchange settlement or conversion on behalf of clients when engaging in 
　RMB-denominated investment products .

2.The provisions of Article 50-3 of the Regulations Governing Foreign Exchange 
　Business of Banking Enterprises regarding limits on RMB purchase or sale through
　accounts of natural persons per person per day shall apply mutatis mutandis. 

3.If the foreign exchange derivatives business or structured product business of a 
　securities enterprise involves RMB-denominated products or is linked to products 
　issued in Mainland Area, the enterprise shall observe the following rules:

(1)The underlying of equity linked foreign exchange derivatives and structured products 
　 may be a listed stock, stock indices or ETFs in Mainland Area; and

(2)The underlying credit of foreign currency credit derivatives may not be the default 
　 risk, credit spread risk and credit rating downgrade risk of a government or a 
　 corporation in Mainland Area, or their debt.

4.Other rules set out by the Bank for appropriate management of Renminbi business.

Article 52  
With the exceptions of foreign exchange derivatives business and structured product 
business, securities enterprises may conduct foreign exchange business involving RMB 
denominated products or products issued in Mainland Area, provided the enterprise has 
been approved by the Bank to engage in such business.
When a securities enterprise, that has been approved by the Bank to engage in foreign 
currency interest rate derivatives, foreign currency bond derivatives and structured
products businesses, intends to add to those businesses RMB-denominated products or 
products linked to underlying issued in Mainland Area, the enterprise only needs to 
report to the Bank for record by submitting a resolution of its board of directors 
resolving the board's approval of the proposed business.