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

Article 1
These Regulations are prescribed pursuant to Paragraph 2,
Article 35 of the Central Bank of the Republic of China（Taiwan）Act.

Article 2

The term “foreign exchange broker” as used in these Regulations shall mean a 
profit-seeking business permitted by the Central Bank of the Republic of China(Taiwan) 
(hereinafter referred to as the Bank) after consulting with the Financial Supervisory
Commission (hereinafter referred to as the “FSC”)and having a business license 
issued by the FSC to engage in part or all of the following brokerage businesses:

1.Buying and selling foreign exchange;

2.Foreign currency call loans;

3.Foreign exchange swaps; and

4.Other foreign exchange business permitted.

With the approval of the Bank, in consultation with the FSC, a foreign 
exchange broker may also conduct the New Taiwan dollar intermediary business 
related to items referred to in the preceding paragraph.

No intermediary business related to the preceding two paragraphs  shall 
be proceeded without permission.

Article 3

A foreign exchange broker may conduct intermediary business with the following 
entities:

1.Domestic and foreign banks; and

2.Other financial institutions approved by the Bank after consulting with the
　FSC.

Article 4

A foreign exchange broker shall be organized as a company limited by shares 
established within the territory of the Republic of China (hereinafter referred
to as the“domestic money broker) or a branch office established by an overseas 
money broker within the territory of the Republic of China (hereinafter referred
to as the“overseas money broker”). The minimum registered capital or operation
funds shall be not less than 100 million New Taiwan dollars.

The aforesaid minimum registered capital or working capital shall be collected
(prepared) in full prior to the commencement of business.

Article 5

For foreign exchange brokers, the investment ceiling of an investor in a foreign
exchange broker shall conform to the following provisions:

1.The holding of a single domestic or foreign financial institutions engaging in
　deposit and lending business shall not exceed 10% of the total capital of said 
　foreign exchange broker; and

2.The holding of a single domestic or foreign investor other than financial 
　institution shall not exceed 20% of the total capital of said foreign exchange
　broker.

The provisions in the preceding paragraph do not apply to international money 
brokerage firms that are permitted to invest by the Bank.

Article 6

For the establishment of a foreign exchange broker, an applicant shall apply to 
the Bank for permission by submitting an application form stating the following
particulars:

1.The name and organization structure of the prospective foreign exchange
　broker;

2.Total registered capital or operation funds of the branch office within the 
　territory of the Republic of China;

3.Business plan;

4.Location of the company or the branch office of a foreign company in Taiwan;

5.The name, place of birth, home address and curriculum vitae, and amount of 
　shares subscribed of each promoter or responsible persons of the branch office 
　of a foreign company in Taiwan, and

6.Other information required by the Bank.

If any part of the application form in the preceding paragraph is incomplete or
inconsistent with relevant provisions of these Regulations, the Bank may ask the
applicant to resubmit the correct data within a prescribed period of time, and
may reject the application if the applicant fails to do so within the time period
prescribed.

Article 7

For the establishment of a domestic money broker, an applicant shall prepare in 
full amount of the minimum registered capital within six months after obtaining 
permission from the Bank, and apply for the certificate of company registration
from Ministry of Economic Affairs. Within three months after completing company 
registration, a domestic money broker shall submit the following documents to 
apply for a business license from the FSC:

1.Approved documents from the Bank;

2.Certificate of company registration;

3.Certificate of capital verification;

4.Articles of incorporation;

5.Shareholders’register and minutes of shareholders' meetings;

6.Directors’register and minutes of meetings of the board of directors;

7.Managing directors’register and minutes of meetings of managing directors;

8.Supervisors’register and minutes of meetings of supervisors; and

9.Other documents required by the FSC.

For the establishment of an overseas money broker, an applicant shall prepare in
full amount of the minimum operation funds within six months after obtaining 
permission from the Bank, and apply to the Ministry of Economic Affairs for 
approval to establish and register a branch office of a foreign company in Taiwan.
Within three months after completing company registration, an overseas money 
broker shall submit the following documents to apply for a business license from
the FSC:

1.Approved documents from the Bank;

2.Certificate of approval of the branch registration of a foreign company in 
　Taiwan;

3.Certificate of the verification of remittance to fund working capital used 
　within the territory of the Republic of China;

4.Other documents required by the FSC.

Before the deadlines for completing the establishment and registration of a 
company or the branch office of a foreign company in Taiwan, or the application 
of business license prescribed in the preceding two paragraphs, the applicant may
request for an extension; only one extension may be granted and the extension 
shall not exceed three months.

Article 8
A foreign exchange broker that intends to make a change in the particulars stated
in Subparagraphs 1, 2 or 4 of Paragraph 1, Article 6 herein shall apply to the 
Bank for approved, register the change of a company or the branch office of a 
foreign company in Taiwan, and apply to the FSC for a new business license.

Article 9
The Bank, before approving a case, shall consult the FSC pursuant to 
Articles 6 and 8, herein and shall send a carbon copy of the permission 
to the FSC afterwards.

Article 10

A foreign exchange broker shall report to the Bank for reference and send the FSC
a carbon copy of the report in any of the following situations:

1.Commencement, suspension, resumption or termination of business;

2.Changing a director, a supervisor or the responsible person of the branch 
　office of the overseas money broker;

3.Merger or dissolution;

4.Involved in any litigation that arises from the business; and

5.Other matters stipulated by the Bank.

Article 11

A foreign exchange broker is required to set aside reserves against losses from 
incorrect execution of order on a monthly basis.

The aforesaid reserves may not be drawn on except for offsetting losses incurred
from incorrect execution of orders or with the approval of the Bank.

Article 12

Senior dealers of a foreign exchange broker shall meet at least one of the 
following requirements:

1.Having worked for more than a year as a dealer in a reputable overseas or 
　domestic foreign exchange broker;

2.Having worked for more than two years as a dealer in an overseas or domestic
　bank or having had a job relevant to the foreign exchange business for more 
　than four years; and

3.Having the approval of the Bank.

At least half of the dealers of a foreign exchange broker shall be senior dealers.
A foreign exchange broker shall inform the Bank of changes of associated dealers.

Article 13
The staff of a foreign exchange broker shall provide transaction-related 
information to customers and conduct business in accordance with the principle 
of good faith. Unless otherwise provided by law or the Bank, the staff of a 
foreign exchange broker may not disclose business data of customers.

Article 14
A foreign exchange broker shall report the daily turnover to the Bank at the end
of each business day, and file a monthly report with the Bank at the end of each
month. The Bank shall provide, on a quarterly basis, information about the 
business of foreign exchange brokers to the FSC for reference.

Article 15
The Bank may examine and audit the business or books of a foreign exchange broker,
or request a foreign exchange broker to submit related reports or documents so as
to maintain the market order.

Article 16

After consultation with the FSC, the Bank may revoke or void the license of any
foreign exchange broker if any of the following violations has occurred:

1.After being approved by the Bank, the foreign exchange broker fails to complete
　the establishment and registration of a company or the branch office of a 
　foreign company in Taiwan, and apply for business license within the prescribed 
　period specified in Article 7;

2.The foreign exchange broker fails to begin business operation within six months
　after being issued a business license by the FSC;

3.The foreign exchange broker seriously violates the provisions of these 
　Regulations, or fails to improve within the period designated by the Bank;

4.After being issued a business license, the foreign exchange broker is found to
　have submitted false information that constitutes a serious violation in its 
　application; and

5.The foreign exchange broker suspends its operation, is dissolved, declares 
　bankruptcy, or undergoes reorganization; and

6.There is evidence indicating that the foreign exchange broker's business 
　operations may be unsound, or that it is unable to meet financial policy 
　requirements.

Article 17
These Regulations shall become effective on the date of promulgation.