| Article 56-1 |
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| Article 56-2 |
Except where otherwise provided by law or regulation, a futures commission merchant investing in a foreign enterprise shall meet with each of the following requirements:
1. Within the preceding three months, the merchant has not received a warning from the FSC.
2. Within the preceding half-year, the merchant has not been ordered by the FSC to discharge or replace a director, supervisor, or manager.
3. Within the preceding year, the merchant has not been ordered by the FSC to suspend its business.
4. Within the preceding two years, the merchant has not had a business permission voided or revoked by the FSC.
5. In the preceding year, the merchant has not had its trading rights terminated or restricted by a futures exchange or futures clearing house pursuant to its bylaws.
6. The futures commission merchant's average adjusted net capital for the preceding quarter was not less than 40% of the total amount of margin deposits required for futures traders' open positions, and it did not show an accumulated deficit in the financial report (audited and attested by a certified public accountant) for the most recent fiscal period, and it is in compliance with the provisions of Article 17 and Article 23, and none of the situations contemplated under Article 22 apply to it.
7. The merchant is in compliance with the provisions of Article 6 of the Regulations Governing the Reserve for Losses on Foreign Investment Allocated by Companies, promulgated by the Ministry of Economic Affairs.
8. The total amount invested in foreign and Mainland China enterprises may not exceed 30% of a futures commission merchant's net worth, and together with funds used for other purposes approved by the FSC in accordance with Article 23, subparagraph 4 may not exceed 40% of a futures commission merchant's net worth. This requirement shall not apply, however, where there is a particular need and special approval is granted.
In the case of noncompliance by a futures commission merchant with any of subparagraph 1 to 4 of the preceding paragraph, if concrete steps have been taken to correct the violation and the competent authority gives permission, the provisions of the respective subparagraphs shall not apply. |
| Article 56-3 |
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| Article 56-4 |
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| Article 56-5 |
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| Article 56-6 |
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| Article 56-7 |
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| Article 56-8 |
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