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 provisions of these Regulations shall govern the foreign exchange business of 
securities enterprises. Matters not provided herein shall be subject to provisions 
under other relevant laws and regulations.

Article 3 
The term "securities enterprises" as used in these Regulations shall mean securities 
firms and financial institutions concurrently engaging in securities business 
established in accordance with the Securities & Exchange Act and the Standards 
Governing the Establishment of Securities firms and issued a license by the Financial
Supervisory Commission (the "FSC").

Article 4  
The term "foreign exchange business" as used in these Regulations comprises the 
following categories:
1.Proprietary trading and underwriting  of foreign currency denominated international 
　bonds;
2.Proprietary trading of foreign securities;
3.Spot foreign exchange transaction between foreign currencies in connection with 
　securities business;
4.Foreign exchange derivatives business;
5.Business involving structured products linked to foreign currency denominated financial
　products;
6.Business involving call (put) warrants issued overseas or issued in foreign currency;
7.Accepting orders to trade foreign securities;
8.Trading in foreign bonds as an agent;
9.Acting as the master agent of an offshore fund institution in the offering and sale of 
　its funds in Taiwan;
10.Acting as a local mandated agent of an offshore fund institution to privately place 
　 offshore funds in Taiwan; 
11.Acting as a participating dealer of an offshore exchange traded fund(ETF) to process 
　 (on a brokerage basis) or engage in (on a proprietary basis) the purchase or 
　 redemption of offshore ETFs in Taiwan;
12.Wealth management business by means of non-discretionary individually managed money 
　 trust with the underlying products denominated in foreign currencies; and
13.Other securities-related foreign exchange businesses approved by the Central Bank of 
　 the Republic of China (Taiwan) (hereinafter referred to as the “Bank”).
　 When any of the businesses mentioned in the preceding paragraph involves foreign 
securities or offshore funds, such foreign securities or offshore funds shall not be 
denominated in New Taiwan dollar (NTD) and shall not be linked to NTD exchange rate or 
NTD money market interest rates indices in Taiwan. 

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.

Article 9  
Securities enterprises engaging in foreign exchange business shall first verify the 
identity or primary registration data of the client, and ensure that supporting
documents comply with regulations. Securities enterprises shall also properly retain
client data and transaction records for at least five (5) years after the completion 
of the transaction or the closing of client's account.

Article 10 
When engaging in foreign exchange business, securities enterprises shall disclose 
fully to the clients foreign exchange related risks, and shall not offer prediction 
on the future movements of the NTD exchange rates.
The letter of approval issued by the Bank is merely an approval for the securities 
enterprise to engage in relevant foreign exchange businesses, which shall not be 
publicized as the Bank's endorsement for the safety or performance of related 
business or used in other inappropriate ways.

Article 11  
A securities enterprise’s coverage of currency risk exposure arising from its foreign 
exchange business shall be carried out by its head office through an authorized bank, 
an offshore banking unit or an overseas financial institution.
A securities enterprise shall heed its foreign exchange risk and draft its own foreign 
exchange risk management rules based on the foreign exchange business conducted. After 
the rules have been passed by its board of directors, all its offices shall abide by 
these rules and conduct audits regularly.

Article 12  
When a securities enterprise has needs for a certain foreign currency arising out of 
its securities-related foreign exchange business, the securities enterprise may raise 
the foreign currency through the following means:
1.The securities enterprise may engage in foreign exchange swap or cross currency swap 
　between NTD and the foreign currency with authorized banks;
2.For hedge trading to cover equity risk associated with offshore exchange-traded fund 
　positions held, the securities enterprise may obtain a foreign currency loan from an 
　authorized bank with the transaction document or the Bank’s approval document, or 
　borrow money from an overseas financial institution;
3.When carrying out a proprietary trade in foreign securities, the securities 
　enterprise may obtain a foreign currency loan from an authorized bank or an 
　overseas financial institution with the transaction confirmation or document from
　the counterparty. For such a loan, the securities enterprise shall sign an 
　affidavit undertaking that“proceeds from the sale of originally purchased foreign 
　security will be remitted into the securities enterprise’s designated repayment 
　account opened at the lending bank”to ensure that the loan will not be used as
　working capital.
4.When a securities enterprise underwrites an international bond on a firm commitment 
　basis or a standby commitment basis, the enterprise may use the underwritten bond as 
　collateral to obtain a foreign currency loan from an authorized bank in compliance
　with the following rules:
(1)Required documentation: The Bank’s letter of approval or underwriting related 
　 contractual document and relevant documents evidencing the amount of settlement 
　 payable by the enterprise;
(2)Loan amount: Up to 60% of payment (to the bond issuer); and 
(3)Tenor of loan: Loan shall be repaid no later than the maturity date of the 
　 underwritten bond or when the bond is sold. 
5.A securities enterprise may obtain a foreign currency call loan from an authorized
　bank or an overseas financial institution.
When acquiring a foreign currency loan or a call loan, securities enterprises shall 
also comply with the following rules:
1.The total balance of foreign currency loans plus foreign currency call loans from
　other financial institutions shall not exceed 100% of its networth as shown in its
　CPA audited or certified financial statements plus the balance of unsold committed 
　foreign currency bonds;
2.The total balance of foreign currency loans plus foreign currency call loans 
　mentioned in the preceding subparagraph shall include those foreign currency loans 
　and call loans obtained by its offshore securities unit (OSU) from authorized banks, 
　offshore banking units and overseas financial institutions, but excluding 
　transactions between the OSU and the head office;
3.The tenor of foreign currency call loans handled by securities enterprises shall not
　be longer than one year; and
4.Proceeds from foreign currency loans and call loans may not be converted into NTD, 
　and unless with the Bank’s approval, the sources of funds for loan repayment may not 
　come from foreign exchange purchase with NTD.

Article 13   
Securities enterprises that have been approved by the Bank to engage in securities-
related foreign exchange business may, within the scope of its permitted businesses, 
handle the offshore securities business and related tax matters on behalf of an OSU of 
the same securities firm. Such business handled by the securities firm shall be booked 
on the account books of the OSU.
When handling the services on behalf of an OSU mentioned in the preceding paragraph, 
the securities enterprise shall observe the Offshore Banking Act, Enforcement Rules of 
the Offshore Banking Act, Regulations Governing Offshore Securities Units, as well as 
other applicable regulations.

Article 14

When the foreign exchange business carried out by a securities enterprise involves 
outward and inward remittance of fund or foreign exchange settlement against NTD, the 
securities enterprise shall deal with an authorized bank in accordance with the 
Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements 
or Transactions (hereinafter referred to as “Declaration Regulations”), Directions 
Governing Banking Enterprises for Operating Foreign Exchange Business (hereinafter 
referred to as “Operating Directions”), and Directions for Banking Enterprises on 
Assisting Clients to Declare Foreign Exchange Receipts and Disbursements or 
Transactions.

Unless special provisions apply to the foreign exchange settlement, securities 
enterprises shall observe the following rules when handling receipts and payments 
associated with their foreign exchange business:

1.Where the receipt/payment of the foreign exchange business is in foreign currency, 
　the client shall carry out foreign exchange settlement at an authorized bank in 
　accordance with the Declaration Regulations, or the payment may be transferred from 
　the client’s foreign exchange deposit account;

2.When accepting orders to trade foreign securities, conducting wealth management
　business by means of non-discretionary individually managed money trust, or 
　purchasing and redeeming of offshore funds by a master agent or its mandated 
　sub-distributors of an offshore fund institution in NTD, the securities enterprise
　shall carry out foreign exchange settlement at an authorized bank in accordance
　with the Declaration Regulations; and

3.Foreign exchange settlement shall be carried out at an authorized bank based on 
　the exact amount of the transaction. Unless with the Bank’s approval, settlement 
　on a net basis after offset of receipts and payments is not allowed.

Article 15

Securities enterprises shall submit requested reports in five (5) business days 
after the end of each month, and ensure the completeness and accuracy of the 
reports. The format of the reports and related matters shall be prescribed 
separately by the Bank. 

With regard to the review of reports submitted by securities enterprises, the Bank 
may dispatch personnel to inspect the relevant account books and documents, or 
request securities enterprises to provide truthful relevant documents or information 
within a prescribed period of time if deemed necessary.

Article 16  
The Bank may suspend, revoke or cancel its approval in part or in whole the foreign 
exchange business engaged by a securities enterprise, or put a moratorium on its 
application either for new foreign exchange business or for adding branches to carry
out foreign exchange business in the event of any of the following: 
1.The securities enterprise fails to commence operation within six months after being 
　issued a letter of approval. A securities enterprise may request for an extension
　with reasons. If approved, the securities enterprise may have an extension of no 
　more than three months. An institution may apply for extension only once ;
2.The securities enterprise has seriously violated the provisions of these Regulations, 
　or was asked by the Bank to act, but has failed to rectify the situation within the
　period specified by the Bank;
3.After being issued a letter of approval to engage in foreign exchange business, the 
　securities enterprise was found to have provided false information in its application 
　which is deemed a serious violation; 
4.The securities enterprise suspends operations, is dissolved, or declares bankruptcy; or
5.There is other evidence indicating that the applicant has a situation that hinders the
　sound operation of the business, or that the applicant is unable to meet financial 
　policy requirements.
A securities enterprise, which has its business approval revoked or cancelled 
according to the preceding paragraph, shall surrender the letter of approval to the Bank 
within seven (7) days after the receipt of the sanction. If the letter of approval is 
not surrendered within seven days, the Bank shall cancel the business approval by public 
announcement.

Article 17  
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.

Article 18  
Securities enterprises that have been approved by the Bank to underwrite foreign 
currency denominated international bonds may also offer financial planning, evaluation 
and consulting services relating to foreign currency denominated international bonds 
(hereinafter collectively referred to as the “consulting service”).
Securities enterprises that have been approved by the Bank to underwrite foreign 
currency denominated international bonds but offers only consulting service mentioned in 
the preceding paragraph may not engage in underwriting on a firm commitment basis or a 
standby commitment basis. 

Article 19  
A securities enterprise that intends to engage in underwriting of foreign currency 
denominated international bonds shall apply to the Bank for approval by submitting 
documents provided in Article 6 herein, and in addition, 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 acredit rating agency approved or recognized by the FSC or an 
　 internationally known credit rating agency; or
(2)The parent company of a foreign securities enterprise has practical experience in 
　 underwriting foreign securities.
3.The regulatory capital adequacy ratio shall meet one of the following requirements:
(1)For domestic securities enterprises, 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 enterprises 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 GTSM, 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 20  
When a securities enterprise engages in the underwriting of a foreign currency 
denominated international bond, receipts and payments between the enterprise and the 
investors and between the enterprise and issuer shall always be made in the denominated 
currency of the international bond.

Article 21   
A securities enterprise that intends to engage in proprietary trading of foreign 
securities shall apply to the Bank for approval by submitting documents provided in 
Article 6 herein, and in addition, photocopies of the latest CPA audited or certified 
financial statements, procedure for handling receipt/payment, process description and 
other documents required by the Bank, provided such trading is neither an investment 
of proprietary funds nor done to meet hedging purpose.

Article 22 
When a securities enterprise engages in business mentioned in the preceding article, 
related receipt/payment shall always be made in the denominated currency of the 
security.

Article 23 
Securities enterprises may not sell the foreign currency fund they receive from repo 
trade for NTD, and the sources of funds for settlement payment upon expiration may not 
come from foreign exchange purchase made with NTD.

Article 24  
Spot foreign exchange transactions between foreign currencies in connection with  
securities business (hereinafter referred to as“spot transaction business between 
foreign currencies”) mean spot transactions business between foreign currencies taking 
place between an integrated securities enterprise that concurrently engages in 
underwriting, dealership and brokerage business provided in Article 16 of the Securities 
and Exchange Act and its clients that meet the essential conditions for securities 
trading purpose.
The“essential conditions for securities trading purpose”referred to in the preceding
paragraph shall meet the following criteria:
1.The amount of spot transaction between foreign currencies does not exceed the amount of 
　foreign currency securities transaction and related fees;
2.The spot transaction between foreign currencies and the transaction of foreign currency 
　securities are carried out contemporaneously with the same client, and the former is 
　settled by the relevant securities settlement deadline; and 
3.The transaction is not on a leveraged, margined or financed basis. 

Article 25  

For a securities enterprise that intends to engage in spot transaction business 
between foreign currencies, its head office shall apply to the Bank for approval by 
submitting documents provided in Article 6 herein, and in addition, documents 
evidencing its qualifications specified below:

1.Having been approved by the Bank to engage in any of the businesses provided in 
　the subparagraphs of Paragraph 1, Article 4 herein and having a record of
　conducting such business.

2.Its networth shown in the latest CPA audited or certified financial statement meets 
　the criteria prescribed by the FSC for a securities enterprise that applies for the 
　setup of an OSU in Taiwan to engage in all of the businesses provided in the 
　subparagraphs of Paragraph 1, Article 22-4 of the Offshore Banking Act.

3.Compliance and sound operation: Free of sanction due to serious violation of rules 
　during the preceding three years before application, or the securities enterprise with 
　sanctioned violation has effected specific improvement and has satisfied the competent 
　authority or the Bank.

4.Its operations and auditing personnel shall meet the following qualifications:

(1)An operations personnel must have at least three-month working experience in relevant 
　 foreign exchange business or have completed at least 12 hours of foreign exchange 
　 regulations related courses given by domestic financial training institutions and 
　 have at least 20 business days of practical training in relevant foreign exchange
　 business  at an authorized bank.

(2) An auditing personnel must have at least six-month working experience in relevant 
　　foreign exchange business, or have completed at least 12 hours of foreign exchange 
　　regulations related courses given by domestic financial training institutions and 
　　have at least 40 business days of practical training in relevant foreign exchange 
　　business at an authorized bank.

5.Its computer equipment and related operating environment are adequate to properly 
　handle matters provided in Article 26 herein.

Branches of securities enterprises may not apply for approval to engage in spot 
transaction business between foreign currencies until their head office has been 
approved by the Bank to do so and has operated the business smoothly. 

Article 26   

Securities enterprises shall prepare other transaction certificates for their spot 
transaction business between foreign currencies, and deliver such certificates to
clients or process them in the method as agreed with the client.

The“other transaction certificates” mentioned in the preceding paragraph may be 
made via electronic form.

Securities enterprises shall submit relevant data to the Bank on transactions 
mentioned in Paragraph 1 hereof on the previous business day by means of electronic 
medium before 12:00 noon on the following business day. The format and content of 
reporting shall be regulated by the Bank separately. 

Article 27   
If relocation or a name change is made by a securities enterprise that has been 
approved to engage in spot transaction business between foreign currencies, the 
enterprise shall report the change to the Bank for record within seven (7) days after 
the receipt of a new business license or permit from the competent authority. In the 
case of relocation, the securities enterprise shall also submit the qualification 
documents of its operations and auditing personnel. 

Article 28    
A securities enterprise may apply for approval to engage in  foreign exchange currency
derivatives business between foreign currencies in connection with securities business 
(hereinafter referred to as “currency derivatives business between foreign currencies”) 
only if they have been approved by the Bank to engage in spot transaction business 
between foreign currencies. 
The scope of currency derivatives business between foreign currencies that a 
securities enterprise may undertake with its clients includes the following:
1.Foreign exchange forward transactions, foreign exchange swaps (SWAP), foreign exchange 
　options and cross currency swap (CCS), that do not include structured products; and
2.Products provided in the preceding subparagraph may not involve NTD exchange rate, or 
　denomination/settlement in NTD.
The currency derivatives business between foreign currencies undertaken by a 
securities enterprise shall be based on the foreign currency securities transaction it 
undertakes with the same client.
The provisions in Articles 25 ~ 27 shall apply mutatis mutandis to the currency 
derivatives business between foreign currencies of securities enterprises.

Article 29  
The scope of foreign exchange derivatives business other than currency derivatives 
that may be undertaken by securities enterprises includes the following: 
1.Equity foreign exchange derivatives comprising equity options, equity swaps and equity 
　forward contracts with the underlying limited to the following:
(1)Stock prices, stock indices or exchange-traded funds in foreign markets ;
(2)Domestic stock prices, stock indices or exchange-traded funds with notional amounts in 
　 foreign currency; and 
(3)Underlying equity products that do not involve Taiwan stock indices listed on a 
　 foreign stock exchange.
2.Foreign currency bond derivatives comprising bond forwards, bond options and further 
　combinations thereof, with the underlying limited to foreign currency denominated bonds
　or bond indices.  
3.Foreign currency interest rate derivatives comprising forward rate agreements, interest
　rate swaps, interest rate options, interest rate swaptions and further combinations 
　thereof, with the underlying limited to foreign currency interest rates or interest 
　rate indices.
4.Foreign currency commodity derivatives comprising commodity forwards, commodity price 
　swaps, commodity options and further combinations thereof, with  the underlying limited
　to foreign currency denominated commodities, denominated and settled in foreign 
　currency. And the counterparties shall be limited to professional juridical persons.
5.Foreign currency credit derivatives, in which all transactions exclude structured 
　products, comprising credit default options and credit default swaps, with the 
　underlying credits referring to the default risk, credit spread risk or credit rating 
　downgrade risk associated with governments or corporations, or their debt. The credit 
　derivatives shall be denominated and settled in foreign currency and done with 
　professional institutional investors as counterparties.
The term “professional juridical persons and professional institutional investors”
referred to in the preceding paragraph shall meet the criteria or scope set out by the 
FSC according to Paragraph 2, Article 4 of the Financial Consumer Protection Act.
Where the underlying assets of the derivatives mentioned in the preceding paragraph 
are foreign currency denominated bonds or interest rate indices, the following rules 
shall be observed:
1.Information on the bonds or interest rate indices is available on a publicly accessible
　website or extensively used trading system. 
2.The constituents of the bonds or interest rate indices do not contain any products that
　are convertible or can be swapped for shares (e.g. convertible bonds or exchangeable 
　bonds).
3.The constituents of the bonds or indices do not contain any securitization products. 
4. Client’s return may be expressed by formulas.
The underlying foreign securities shall be complied with the scope of securities 
firms’ proprietary trading of foreign securities prescribed by the FSC, or other 
securities as approved by the FSC.

Article 30 
A securities enterprise that intends to engage in foreign exchange derivatives 
business shall apply to the Bank for approval by submitting documents provided in 
Article 6 herein, and in addition, documents specified below:
1.Document evidencing that its financial derivatives business has not been suspended or 
　terminated by GTSM pursuant to the GreTai Securities Market Regulations Governing 
　Over-the-Counter Trading of Financial Derivatives by Securities firms (hereinafter 
　referred to as “Derivatives Trading Regulations”) during the preceding six months;
　and
2.Business plan (including product profiles, operational guidelines, risk management, 
　risk disclosure statements, curriculum vitae of the operations and auditing personnel, 
　and risk disclosure statement). Business plan is not required for securities 
　enterprises applying for foreign exchange forward transactions and/or foreign exchange 
　swaps (SWAP).
Application for approval is not required if a securities enterprise invests in foreign 
exchange derivatives with its own funds or carries out foreign exchange derivative 
transactions for hedging purposes as a client with an authorized bank approved by the 
Bank to engage in foreign exchange derivatives business or with an overseas financial 
institution. 

Article 31 
When a securities enterprise conducts foreign exchange derivatives business, the 
procedure for verifying that the counterparty meets the criteria for professional 
clients, trading rules, implementation of risk management, information disclosure, and 
the related internal control and audit systems shall be complied with relevant 
regulations set out by the FSC. And in addition, the following rules shall apply:
1.Receipt/payment between the enterprise and its client related to settlement and fees, 
　and payment due to early termination of contract or expiration of contract shall be 
　made in the denominated currency. Except for payments that are transferred from the 
　client’s deposit account, the client shall carry out foreign exchange settlement 
　against NTD through an authorized bank in accordance with the Declaration Regulations. 
　The securities enterprise shall not be entrusted to handle the transaction for the 
　client.
2.Securities enterprises shall not, for themselves or for clients, utilize foreign 
　exchange derivatives to defer or hide losses, misrepresent or recognize income earlier,
　or use other illicit means to do window dressing or manipulate financial statements.

Article 32  
Securities enterprises shall forthwith inform the Bank when their financial 
derivatives business is suspended or terminated by the GTSM in accordance with the 
Derivatives Trading Regulations and when their business qualification is reinstated.

Article 33  
The structured products business linked to foreign currency denominated financial 
products undertaken by securities enterprises (hereinafter referred to as “structured 
products business”) may be linked to the following underlying:
1.Foreign securities;
2.Foreign stock indices and futures indices;
3.Foreign currency interest rate indices;
4.A combination of underlying products provided in the preceding three subparagraphs;
5.Foreign currency denominated international bonds issued in Taiwan and listed on GTSM; 
　and
6.Other underlying products as approved by the Bank.
The underlying products mentioned in the preceding paragraph exclude credit risk and 
exchange rate indices. Where the target buyers of the underlying assets are restricted 
according to the applicable regulations of the FSC, the target buyers of the structured 
products concerned shall also be restricted by the same regulations.

Article 34  
The provisions in Paragraphs 3 & 4 of Article 29, and Articles 30 ~ 32 shall apply 
mutatis mutandis when securities enterprises conduct the structured products business.

Article 35 
The scope of business involving call (put) warrant issued overseas or denominated in 
foreign currency (hereinafter referred to as “offshore or foreign currency warrant 
business”) that may be undertaken by securities enterprises includes the following:
1.For domestic call (put) warrants issued with a link to foreign securities or indices
　of foreign securities markets, the scope of the underlying shall conform to relevant 
　regulations stipulated by the FSC.
2.For offshore call (put) warrants issued with a link to domestic securities or indices, 
　the scope of the underlying shall be limited to domestic stocks or baskets of stocks, 
　domestic exchange traded securities investment trust funds, offshore ETFs, and Taiwan 
　depositary receipts. 

Article 36  
A securities enterprise that intends to engage in offshore or foreign currency warrant
business shall apply to the Bank for approval by submitting documents provided in Article
6 herein, and in addition, documents specified below:
1.Qualification certificates issued by the FSC and the competent authority in the place 
　where the offshore warrants will trade; and
2.Business plan (including product profiles, operational guidelines and risk management).

Article 37   
A securities enterprise that intends to accept orders to trade foreign securities for 
the first time shall apply to the Bank for approval by submitting documents provided in 
Article 6 herein, and in addition, a business plan (including operational principles and 
business practice, procedures of handling of receipt/payment and operation).
when a securities enterprise already approved by the Bank to accept orders to trade 
foreign securities with receipt/payment of settlement and fees in foreign currency 
intends to engage in receipt/payment in NTD, the securities enterprise only needs to 
submit the following additional documents to the Bank to apply for approval:
1.A photocopy of the Bank’s letter of approval for the securities enterprise to accept 
　orders to trade foreign securities with receipt/payment of settlement and fees in 
　foreign currency;
2.A photocopy of letter of approval from the FSC;
3.A statement supporting that the applicant’s computer system is able to meet the 
　requirements set out in Article 38 herein regarding receipts and payments in different 
　currencies; and
4.A description of the controls for receipts and payments of settlement and fees in 
　different currencies.

Article 38 
When a securities enterprise  accepts orders to trade foreign securities, the 
securities enterprise shall comply with the following rules with regard to 
receipt/payment of settlement and fees with clients:
1.When a client designates the settlement to be made in a foreign currency, the related 
　receipt/payment shall be made in the foreign currency; and
2.When a client designates the settlement to be made in NTD, the related receipt/payment 
　shall be made in NTD.

Article 39   
A securities enterprise that intends to trade foreign bonds as an agent shall apply 
to the Bank for approval by submitting documents provided in Article 6 herein, and in 
addition, a business plan (including business introduction, operating procedure and risk 
management). 

Article 40
When a securities enterprise trades foreign bonds as an agent, payment shall be 
remitted by the buyer directly into an account designated by the foreign financial 
institution. The receipt/payment for investment, redemption, and settlement, fees 
charged by the foreign financial institution and other fees shall be made in foreign 
currency.

Article 41  
A securities enterprise that intends to act as the master agent of an offshore fund 
institution in the offering and sale of its funds in Taiwan (hereinafter referred to 
as the“offshore fund master agency business” shall apply to the Bank for approval by 
submitting documents provided in Article 6 herein, and in addition, the following 
documents:
1.A photocopy of document evidencing the approval or effective registration with the 
　FSC for offering and sale of offshore funds in Taiwan;
2.Business plan (including business introduction, operating and receipt/payment 
　procedure); and
3.List of sub-distributors and a statement supporting the qualifications of those 
　sub-distributors.
If the offshore ETF is listed in NTD, the application shall be filed on a case-by-case
basis. 

Article 42 
When a securities enterprise acting as a master agent for an offshore fund institution
sells the funds or mandates its sub-distributors to handle the offering and sale of the 
offshore funds, the related receipt/payment shall be handled according to the following 
rules:
1.When the investor pays and receives funds directly to and from an offshore account 
　designated by the offshore fund institution, the related receipt/payment for purchase 
　and redemption between the investor and the offshore fund institution shall be made in 
　foreign currency.
2.When the investor purchases the offshore fund through the account opened by the master 
　agent at a domestic bank in the name of the offshore fund institution, or a bank 
　account designated by the centralized securities depository enterprise, or a 
　non-discretionary money trust managed by a trust enterprise, or a foreign securities 
　brokerage agreement by a securities enterprise, the following applies:
(1)When the purchase is paid in NTD, relevant receipt/payment shall be made in NTD.
(2)When the purchase is paid in foreign currency, relevant receipt/payment shall be made 
　 in foreign currency.
(3)Upon receiving purchase payments and redemption proceeds that involve exchange 
　 settlement against NTD, the securities enterprise shall carry out exchange settlement 
　 promptly and remit the payments out to the offshore fund institution or remit the 
　 proceeds into the account designated by the investor.
3.When an investor purchases an offshore fund with foreign currency, and then switches 
　into another offshore fund with a different currency, the investor may be paid with 
　the denominated currency of the fund at the time of redemption. 

Article 43 
When a master agent files a report with the FSC in events referred to in Article 12 of
the Regulations Governing Offshore Funds, it shall send the Bank a copy of the report.

Article 44  
When a securities enterprise intends to act as the local mandated agent of an offshore
fund institution and conduct private placement to specified counterparties (hereinafter 
referred to as “offshore fund private placement business”), the securities enterprise 
shall apply to the Bank for approval by submitting documents provided in Article 6 
herein, and in addition, the following documents:
1.A statement to comply with the provisions in Article 52 of the Regulations Governing 
　Offshore Funds. Such statement is not required if the counterparties are entities 
　provided in Subparagraph 1, Paragraph 1, Article 52 of the Regulations.
2.Business plan (including business introduction, primary data of the offshore fund, 
　operating and receipt/payment procedure). 

Article 45   
All receipt/payment for settlement and fees between the local mandated agent of a 
privately placed offshore fund and the counterparties shall be made in the denominated 
currency of the fund. 
When the local mandated agent of a privately placed offshore fund purchases fund 
shares from the offshore fund institution, it shall do so in the name of the counterparty.
When the offshore fund institution reports to the institution designated by the FSC 
within five days from the date that the price of the privately placed offshore funds has 
been paid in full, it shall send a copy of the report to the Bank.

Article 46  
When a securities enterprise intends to act as a participating dealer for an offshore
ETF to process (on a brokerage basis) or engage in (on a proprietary basis) purchase 
or redemption of offshore ETFs in Taiwan (hereinafter referred to as “purchase and 
redemption of offshore ETFs business”), the securities enterprise shall, after 
obtaining approval from or completing effective registration with the FSC, apply to 
the Bank for approval by submitting documents provided in Article 6 herein and a 
business plan (including business introduction, operating process, receipt/payment
procedure, and hedging transactions).

Article 47   
Receipts and payments between the participating dealers and investors for the purchase
and redemption of an offshore ETF shall be made in NTD only. 

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.  

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. 

Article 53  
These Regulations shall become effective on the date of promulgation.