Operation of investment consulting business for foreign securities shall be limited to the following enterprises:
1.Securities investment consulting enterprises.
2.Securities brokers engaging in consigned trading of foreign securities and concurrently operating securities investment consulting business.
3.Futures brokers engaging in consigned trading of foreign futures and concurrently operating securities investment consulting business.
4.A trust enterprise managing specified money trusts and concurrently operating securities investment consulting business.
5.A SITE that concurrently conducts securities investment consulting business.
The scope and types of foreign securities for which an operator of investment consulting business for foreign securities may provide consulting services shall be announced by the FSC.

Those operating foreign securities investment consulting business shall conform with each of the following requirements:
1.The CPA-audited and certified financial report for the preceding period shall show a net worth per share not lower than par value; provided that this restriction shall not apply where a SICE has obtained its business license for less than 1 full fiscal year.
2.The enterprise shall have received no disposition within the preceding 2 years of a severity equal to or greater than that in Article 103, subparagraphs 2 through 5 of the Act, Article 66, subparagraphs 2 through 4 of the Securities and Exchange Act, or Article 100, paragraph 1, subparagraphs 2 through 4 of the Futures Trading Act, or Article 44, paragraph 1, subparagraph 2 or Article 44, paragraph 2, subparagraphs 1 or 2 of the Trust Enterprise Act. This provision shall not apply, however, when there has been concrete improvement of the circumstances of its violation and it has received approval from the competent authority.
3.The internal management system for the operation of foreign securities investment consulting business has been established, and sufficient, qualified associated persons and internal auditors have been appointed.
4.The enterprise's on-site facilities shall conform to SITCA regulations.
Those operating securities investment consulting business for foreign securities other than offshore funds shall conform to one of the following requirements in addition to those of the preceding paragraph:
1.The securities firms and their subsidiaries and branch units which have signed cooperation contracts with the enterprise shall possess member status or trading qualification status in FSC-designated foreign securities exchanges.
2.The cooperating securities investment consulting companies shall have a CPA audited and certified total net value of managed assets greater than 1 billion US dollars or the equivalent in foreign currency.
3.The enterprise shall have paid-in capital of NT$50 million or more, and information equipment and sufficient and qualified personnel to obtain real-time investment research information relating to foreign securities.

Operation of investment consulting services for foreign securities may be undertaken only after FSC approval is obtained through application with the required application form and the following supporting documents:
1.The CPA-audited and attested financial report for the most recent period. If the date of application is more than 6 months past the start of the new fiscal year, the CPA-audited and attested financial report for the first half of the fiscal year shall additionally be submitted.
2.A statement of compliance with paragraph 1, subparagraph 2 of the preceding Article.
3.Internal management system for the operation of foreign securities investment consulting business.
4.Documentary evidence issued by the SITCA certifying that the premises, facilities, and personnel allocation have been reviewed and found to meet requirements.
5.A statement that there is no misrepresentation or concealment in the application form and the appendices.
6.Other documents as required by FSC regulations.
The internal management system under subparagraph 3 of the preceding paragraph shall include operating principles for sufficiently understanding customers, business solicitation, investment analysis, resolution of business disputes, and personnel training and administration.
The scope of foreign securities for which an approved operator of investment consulting business for foreign securities may provide consulting services, and any change thereto, shall be submitted for review and approval by the SITCA, and the SITCA shall submit a monthly report to the FSC.
The required application documents under the preceding paragraph, and any amendment thereto, shall be prescribed by the SITCA and submitted to the FSC for approval.

The FSC may withhold approval for an application for operation of investment consulting services for foreign securities under any of the following circumstances:
1.Failure to comply with the provisions of Articles 19 and 20.
2.Failure to make correction within the prescribed period when required application documents are not submitted in full, or when they contain incorrect information or lack specific required items.
3.The likelihood of insufficient professional expertise for sound and effective management of the business, or when otherwise deemed necessary for protection of the public interest.

Except where FSC approval is otherwise obtained or through registration effective upon notification, an application to operate investment consulting services for foreign securities may not involve the domestic offering, issuance, or trading of securities.

Applicants to operate investment consulting business for foreign securities shall deliver to customers relevant information regarding the securities about which they consult, and shall do the same whenever that information is updated.

When the FSC discovers any of the following circumstances after an enterprise has received approval for operation of investment consulting services for foreign securities, then in addition to voiding or revoking its approval, the FSC may also, in view of the severity of the circumstances, suspend for a period of 2 years its acceptance of any new business of the same type:
1.The enterprise's application documents contain misrepresentations.
2.Violation of any provision of the preceding two articles.
3.Violation of any other compulsory or prohibitive FSC regulation regarding operation of recommendation and consulting services for foreign securities investment.