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Title: Regulations Governing Financial Institutions Applying To Engage In Bills Finance Business CH
Amended Date: 2003-08-01
Category: Financial Supervisory Commission(金融監督管理委員會)
Article 1
These Regulations are enacted in accordance with Article 17 of the Act
Governing Bills Finance Business.
Article 2
Financial institutions as used in these Regulations shall mean Banks
and Securities Firms.
The term "Banks" as referred to in the preceding paragraph shall not
include investment and trust companies; the term "Securities Firms" as
referred to in the preceding paragraph are limited to those which
concurrently conduct securities underwriting, trading and brokerage.
Securities Firms may only apply to engage in short term bills
brokerage and trading.
Article 3
If a financial institution has invested in and holds shares exceeding
20% of the actual paid-in capital of a bills finance company, such
financial institution may not apply to engage in a bills finance business
unless otherwise approved by the competent authority.
A financial institution that, prior to the promulgation of this Regulation,
is an investor in the shares of a bills finance company with an
investment exceeding the ratio cited above and has obtained approval
from the competent authority to engage in the bills finance business
may continue to do so, provided that such financial institution may not
apply to open additional branches [for its bills finance business] or to
expand the scope of its bills finance business.
Article 4
A financial institution that has not been punished by a fine for
violation of the Act governing Bills Finance Business, or the Banking
Act of the Republic of China, or been subject to any penalty prescribed
by Article 66 of the Securities and Exchange Law within one (1) year
prior to its application may apply to the competent authority for
permission to engage in a bills finance business. Such application
shall include:
1. Application (form enclosed);
2. Board resolution;
3. Business plan; and
4. Other documents as may be required by the competent authority.
A branch of a foreign financial institution may replace the board
resolution required by Item 2 of the preceding paragraph with a
document evidencing the consent of a person in the head office
authorized [to give consent to apply to engage in a bills finance
business in Taiwan], and shall also provide an affirmation that
engaging in a bills finance business will not violate the laws and
regulations of its home country or the charter of its head office.
The business plan required by Paragraph 1, Item 3, shall include the
1.The departments or branches that will engage in certifying,
underwriting, brokering and trading of short term bills;
2.An evaluation of the market environment;
3.The principles and policies by which the business operations will be
4.Projected volumes, profits, and losses for the next three years and an
explanation of the basis for such forecast;
5.The [planned] deployment, management, and training of personnel
(including a roster of business personnel and documents
evidencing their qualifications);
6.A business manual (which shall include an operations flow chart,
accounting procedures and internal control and audit systems).
Article 5
A financial institution that increases the number of its branches
engaging in bills finance business shall apply for permission to do so in
accordance with the provisions of the preceding articles.
Article 6
A financial institution that has received permission to engage in bills
finance business shall, within six (6) months after the date on which it
receives such permission and prior to engaging in a bills finance
business, submit the following documents to the purpose competent
authority for purposes of obtaining a new business license (approval
license) for the head office (or branch);
1.The approval letter from the competent authority;
2.A roster of business personnel;
3.Documentation evidencing the deposit of the security deposit; and
4.Other documents as required by rules established by the competent
authority or the purpose competent authority .
When applying for the aforesaid business license, the financial
institution shall also submit a written report to the relevant competent
The competent authority shall revoke its permission [for a financial
institution to engage in bills finance business] if such financial
institution fails to apply for a new business license (approval license)
within the time period required by the preceding paragraph. However,
the competent authority may grant one (1) extension, not to exceed six
(6) months, upon timely application and upon showing of a good
reason for such extension.
Article 7
The preceding three articles shall not apply to a financial institution that
is party to an approved merger with a bills finance company and
subsequently engages in the bills finance business.
Article 8
A head office or branch of a financial institution that wishes to cease all
or part of its bills finance business shall apply to do so by submitting a
business plan and application to the competent authority. Such
financial institution shall also apply for a new business license
(approval license).
The business plan required by the preceding paragraph shall include the
1.A description of the business that the financial institution will cease
to engage in and the reason for such cessation; and
2.A substantive discussion of how the rights of, and obligations to,
existing clients will be handled and [a discussion] of other
matters relevant to [another financial institution] taking over the
services offered by the financial institution.
Article 9
These Regulations shall become effective upon promulgation
If the translations of the texts differ from the original Chinese
texts, the original texts are preferential.