A Taiwan-area insurance enterprise that meets the following requirements may apply to the Competent Authority for approval to make equity investment in an insurance enterprise in Mainland Area or a foreign-invested insurance enterprise as defined in Mainland Area:
1. The enterprise has shown sound operational performance and secure financial capacity in the three years prior to application;
2. The enterprise’s ratio of equity capital to risk-weighted assets after deducting the amount of the planned investment applied for is 200% or higher;
3. The enterprise has not been subject to any sanction imposed by the Competent Authority in the three years prior to application, or has been subject to sanction but specific remedial actions have been taken therefor and accepted by the Competent Authority;
4. The enterprise is free of the record of deficiency in the implementation of risk management in the past year prior to application or there has been the record of deficiency but specific remedial actions have been taken therefor and accepted by the Competent Authority;
5. The enterprise has sound internal control systems in place; and
6. There are no other facts indicating that the sound business operations of the enterprise are likely to be adversely affected.

A Taiwan-area insurance agent company, insurance broker company, or insurance surveyor company that meets the following requirements may apply to the Competent Authority for approval to make equity investment in an insurance agent company, insurance broker company, or insurance surveyor company in Mainland Area:
1. The company has shown sound operational performance and secure financial capacity in the three years prior to application; and
2. The company has not been subject to sanction under the provisions of Article 167-2 of the Insurance Act in the three years prior to application, or has been subject to sanction but specific remedial actions have been taken therefor and accepted by the Competent Authority.

Unless it is otherwise provided by the Competent Authority, a Taiwan-area insurance agent company, insurance broker company, or insurance surveyor company intending to make equity investment in Mainland Area shall submit the following documents to the Competent Authority for approval:
1. An application form.
2. An investment plan that includes the following particulars:
(1) An investment plan, including the strategic objectives of investment, expected benefits, sources of funds, fund utilization plan, and fund recovery plan;
(2) Principles for business operation, including the location, capital, operations, business items and business strategies of the invested company.
(3) The shareholder structure, organizational structure and functions, and manpower of the invested company.
(4) Financial projections of the invested company for the coming three years.
(5) Risk assessment, including assessment of operational risk and concrete risk control/management plan.
3. Minutes of the board resolution, or the consent of all directors in the absence of a board of directors.
4. CPA-audited or reviewed financial report for the latest period.
5. Details of domestic and foreign investees on the date of application.
6. An equity investment agreement which should show that the financial and business information of the invested company will be made available and the strategic objective of the investment will be performed.
7. The list of persons to be assigned as director, supervisor or manager of the invested company.
8. Such other information or documents as may be required by the Competent Authority.
The persons to be assigned as director, supervisor or manager by the insurance enterprise as mentioned in subparagraph 7 of the preceding paragraph shall meet the qualification requirements set forth in the Regulations Governing Required Qualifications for Responsible Persons of Insurance Enterprises.

A Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company must have obtained the approval of the Competent Authority before applying to [the insurance authority in] Mainland Area for making equity investment, and shall promptly inform the Competent Authority after obtaining approval from the insurance authority in Mainland Area to make equity investment..
After a Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company has obtained the approval of the insurance authority in Mainland Area to make equity investment, it shall promptly report to the Competent Authority for recordation by submitting documents relating to the following particulars:
1. An approval letter from the insurance authority in Mainland Area; and
2. The amount and target of investment, and the equity structure of invested company.

A Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company shall submit relevant documents to the Competent Authority for approval before they transfer their shareholding in an invested company in Mainland Area to others.

When a Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company intends to increase its equity investment in an institution in Mainland Area, it shall submit documents to the Competent Authority for approval in accordance with Article 29 herein.
If a Taiwan-area insurance enterprise intends to increase its equity investment in an insurance enterprise in Mainland Area such that its total shareholding in the Mainland-area enterprise will exceed 50 percent of said enterprise’s total outstanding voting shares or total capital, the Taiwan-area insurance enterprise shall apply to the Competent Authority for approval pursuant to Article 22, paragraph 1 and paragraph 2 herein.

A Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company shall promptly inform the Competent Authority by submitting a report on the particulars of the event and relevant information if its invested company in Mainland Area has any of the situations below:
1. Changing of business items or major management policy.
2. Changing of capital that results in change to the original ownership interest of the Taiwan-area insurance enterprise insurance agent company, insurance broker company, or insurance surveyor company.
3. Making major investments.
4. Dissolved or suspended business.
5. Changing the name of the institution.
6. Merging, transferring, or assuming all or an essential part of assets or business of another financial institution.
7. Undergoing reorganization, liquidation or bankruptcy proceedings.
8. Major loss has occurred or is foreseeable.
9. Having committed a material violation or business license being revoked or annulled by the insurance authority in Mainland Area.
10. Other material events.
With respect to any of the situations specified in subparagraphs 1 to 7 of the preceding paragraph, a Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company shall report to the Competent Authority in advance.

A Taiwan-area insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company shall input the basic and operating information of its invested insurance enterprise, insurance agent company, insurance broker company, or insurance surveyor company in Mainland China into an information reporting system designated by the Competent Authority and update the information when changes occur.