Newsletter
SFC AMENDS REGULATIONS GOVERNING COMMISSIONED OPERATIONS BY SITES AND SICES
The Securities and Futures Commission (SFC) completed amendments to the Securities Investment Trust Enterprise (SITE) Management Regulations and Securities Investment Consulting Enterprise (SICE) Management Regulations in March. Included therein are the provisions that SITEs and SICEs must meet the following criteria before they will be permitted to handle business on a commission basis for clients:
Have had a business license for over three years.
Have not been penalized by the SFC by dismissals, cessation of business, or revocation of their license within the past two years.
Have not had any warning penalties imposed within the past year.
Have not had any self-regulatory penalties imposed by the industry association within the past year.
Have not been found in need of any improvements upon completion of special inspection and guidance by the industry association.
Have deposited a discretionary custodian fund of a certain amount in trust of the industry association.
Meet other criteria as provided by the SFC.
SITEs and SICEs must have a net worth of more than NT$300 million and NT$30 million, respectively, to be permitted to handle business on a commission basis for clients. The minimum monetary amounts in cases of business commissioned by an investor will be separately announced by the SFC. The ceilings on discretionary investment in such cases are as follows: the total amount of investment by each client in the securities of any issuing company may not exceed 20% of the entrusted assets; the total amount of investment by all clients in the shares of any issuing company may not exceed 10% of the total outstanding shares of the issuing company.