Unless otherwise provided in these Regulations or by the Bank, 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 in the case of a foreign securities firm, has submitted an application to the Bank and been issued a letter of approval.
A securities enterprise may apply to engage in all or some of the business categories mentioned in the subparagraphs of Paragraph 1 of Article 4 herein, and the Bank will grant approval to each business category individually. The Bank may also prescribe other rules or state those rules in the letter of approval for business categories approved under Subparagraph 4 of the same paragraph and article.
Unless otherwise provided in these Regulations or by the Bank, a securities enterprise shall report the date of commencement to the Bank for record within seven (7) days after commencing its foreign exchange business.
Unless otherwise provided in these Regulations or by the Bank, securities enterprises shall not conduct any foreign exchange business without the approval of the Bank.

A securities enterprise that applies for approval to engage in foreign exchange business shall submit a written application with the following documents:
1.A photocopy of the certificate of security business license;
2.A photocopy of the business license or qualification document for relevant business evidencing the approval of the FSC or the consent of the Taipei Exchange (hereinafter referred to as “TPEx”) for the securities enterprise to engage in the business;
3.A resolution of the board of directors resolving to apply for the business or a letter of authorization from the head office or regional command center in the case of a foreign securities firm; and
4.A statement of regulatory compliance.
When a securities enterprise applies to engage in foreign exchange businesses provided in Item 2 of Subparagraph 1, Subparagraph 2 or 3, Paragraph 1 of Article 4 herein, it shall simultaneously apply for a foreign currency risk upper limit and the 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 a change in the approved foreign currency risk upper limit and exempt items mentioned in the preceding paragraph occurs, a securities enterprise shall submit a FSC approval document or other relevant documents to the Bank for consent.

A securities enterprise that applies 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.

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.The applicant has failed to assist declarants to fill out the Declaration Statement of Foreign Exchange Receipts and Disbursements or Transactions (hereinafter referred to as “Declaration Statement”) as required.
3.A high error rate in the certificates, reports and forms prepared by the applicant;
4.The applicant has violated the provisions of these Regulations or relevant rules in the past year and the violation is of a serious nature; the applicant was ordered to rectify the situation by the Bank, but has failed to do so within the period specified by the Bank; or
5.Other facts that are sufficient to indicate that the applicant may hinder sound operations of the business, or that the applicant is unable to meet financial policy requirements.
When a securities enterprise reporting a foreign exchange business to the Bank for record with false documents or reporting a foreign exchange business which is not required to report to the Bank for record according to these Regulations, the Bank may, depending on the severity of the situation, impose the following sanctions:
1.Demand the securities enterprise to take remedial action;
2.Suspend the application of the securities enterprise for new foreign exchange business or for adding branches to conduct foreign exchange business for a specified period of time;
3.Suspend specific foreign exchange businesses of the securities enterprise for a specified period of time; or
4.Withdraw the securities enterprise’s privilege of commencing a foreign exchange business that requires reporting for record according to these Regulations by reporting the business to the Bank for record.

The Bank may suspend, revoke or cancel its approval in part or in whole the foreign exchange business engaged by a securities enterprise, or suspend the application of the securities enterprise for new foreign exchange business or for adding branches to conduct 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. The applicant may request for an extension with valid reasons. If agreed by the Bank, the securities enterprise may have an one-time extension of no more than three months;
2.The securities enterprise did not engage in a foreign exchange business again within one year after reporting to the Bank the date of commencing the business;
3.The securities enterprise has violated the provisions of these Regulations or other relevant laws and regulations and the violation is of a serious nature, or was asked by the Bank to rectify the situation within the period specified by the Bank, but has failed to do so;
4.After the securities enterprise has been approved to engage in various foreign exchange businesses, its original application documents were found to contain false information or misrepresentation of a serious nature;
5.The securities enterprise suspends operations, is dissolved, or declares bankruptcy; or
6.Other facts that are sufficient to indicate that the securities enterprise may hinder sound operations of the business, or that the securities enterprise is unable to meet financial policy requirements.
For the securities enterprise whose approval is revoked or cancelled according to the preceding paragraph, the Bank will announce to nullify the approval.
A securities enterprise that is ordered by the Bank or the relevant competent authority to suspend or stop applying for business for a specified period of time shall not commence any foreign exchange business that requires reporting for record according to these Regulations by reporting the business to the Bank for record if the suspension period has not expired, if it fails to propose proper and concrete improvement measures during the suspension period, or if its proposed improvement measures have not been accepted by the competent authority.