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

Chapter 3　　Detailed Provisions – Operation and Management of Foreign Exchange Business

Section 1　　Securities Related Business Involving Foreign Exchange

Subsection 1　　Foreign Currency Denominated International Bond Business

Article 19  
Securities enterprises that have obtained the qualification to engage in 
proprietary trading of domestic bonds may also engage in proprietary trading 
of foreign currency denominated international bonds without making an 
application.

Securities enterprises that have obtained the qualification to underwrite 
domestic bonds may also offer financial planning, evaluation and consulting 
services relating to foreign currency denominated international bonds in 
accordance with the following rules without making an application:
1.The securities enterprise may not engage in underwriting on a firm commitment 
　basis or a standby commitment basis;
2.The securities enterprise may not be involved in receipt/payment between the 
　issuer and the investors.
3.The securities enterprise may not report the commencement of underwriting 
　foreign currency denominated international bonds business by offering 
　financial planning, evaluation and consulting services relating to foreign 
　currency denominated international bonds.

Article 21 
A securities enterprise that intends to engage in the underwriting of foreign 
currency denominated international bonds shall apply to the Bank for approval 
by submitting documents provided in Article 7 herein and documents evidencing 
its qualifications as specified below: 
1.Having the qualification to underwrite domestic securities.
2.Meeting one of the criteria below:
(1)Having a long-term credit rating of BBB (or equivalent) or higher for the 
　 latest year from a credit rating agency approved or recognized by the FSC 
　 or an internationally known credit rating agency; or
(2)For a branch of a foreign securities firm in Taiwan, its head office has 
　 practical experience in underwriting foreign securities.
3. The regulatory capital adequacy ratio shall meet one of the following 
　 requirements:
(1)For domestic securities firms, the regulatory capital adequacy ratio in the 
　 six months before the date of application shall be at least 200%; for banks 
　 and bills finance companies engaging concurrently in securities business, 
　 the regulatory capital adequacy ratio shall reach the statutory ratio;
(2)For branches of foreign securities firms in Taiwan, their head office shall 
　 meet the criteria provided in the preceding item or Paragraph 3, Article 59 
　 of the “Regulations Governing Securities Firms”.
4. Free of any of the following sanctions:
(1)Any sanction imposed by the FSC during the preceding one year acting pursuant 
　 to any of Subparagraphs 2 ~ 4, Article 66 of the “Securities and Exchange 
　 Act”; and
(2)Any sanction during the preceding one year whereby the TPEx, acting pursuant 
　 to its operating rules or bylaws, has suspended or restricted the firm's 
　 trading privileges.
5. No accumulated loss as shown in its latest CPA audited or certified financial 
　 statements.

Article 22  
When a securities enterprise engages in the underwriting of a foreign currency 
denominated international bond, receipt/payment between the enterprise and the 
investors/issuer shall always be made in the denominated currency of the 
international bond.