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

106.03.29

Securities brokers shall comply with Explanations 2 and 3 to engage in the brokerage of foreign bond transactions. Please take note.Explanations:

1.This is in accordance with the letter from the Financial Supervisory Commission (“FSC”), dated January 20, 2005 (Ref. No.: Jin-Kuan-Zeng-2-Zi-0930159964)

2.Please advise your members of securities brokers applying for the said business to the CBC to comply with the following:

(1) Before engaging in such business, the head office (the Taiwan branch, if it is a foreign company) shall apply for the approval of the CBC by submitting aletter together with a copy of the license, a copy of the FSC documents approving such business, a business plan, a resolution from the board of directors approving to conduct the business, or an authorization letter issued by the head office (or regional head office) of the foreign company, acompliance statement. With respect to subsequent foreign securities brokerage business, it is not required to obtain the CBC’s approval.

(2) Having been approved, the financial institution should start the business within six months. If the financial institution fails to start with meet the required period, the CBC may abolish or revoke the approval; provided that, if there is a legitimate reason, the financial institution may apply for a three-month extension, and only one such extension is permitted.

3.Securities firms, engaged in the said business, should submit a monthly report of foreign securities brokerage to the Association. The Association should aggregate the monthly reports and provide a copy to the CBC for reference.