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

Subject:
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 a
　　　letter 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, a
　　　compliance 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.