Newsletter
MINIMUM DISCRETIONARY AC-COUNT VALUE SET AT NT$10 MILLION
On 9 October 2000, the Ministry of Finance (MOF) announced the Rules Governing the Management of Discretionary Accounts by Se-curities Investment Consulting Enterprises and Securities Investment Trust Enterprises. Under the rules, a securities investment consulting en-terprise (SICE) or securities investment trust enterprise (SITE) may carry on discretionary investment business only with the approval of the Securities and Futures Commission (SFC). To qualify, a SICE must have been operating for at least two years, have paid-up capital of at least NT$50 million, and its net worth per share must not have fallen below the shares' par value in a recent period. For a SITE to qualify, its net worth per share must not have fallen below the shares' par value in a recent period.
On 3 November 2000, the SFC announced the imposition of a minimum investment require-ment of NT$10 million at the time a discretion-ary account is accepted. Further, where a SICE carrying on discretionary investment business has paid-up capital of less than NT$300 million, the total value of discretionary accounts accepted must not exceed 20 times its net worth.