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Enforcement Letter

Organisation
Organisation Order of the Financial Supervisory Commission
Issue No.
Issue No. Financial-Supervisory-Securities-SITC 1150382965 CH
Issue Date
Issue Date 2026/07/08
Content
Content     Order of the Financial Supervisory Commission

    Issue Date: 8 July 2026
    Issue No.: Financial-Supervisory-Securities-SITC-1150382965

  1. Pursuant to Article 3, paragraph 3, subparagraph 3 and Article 4, paragraph 3, subparagraph 3 of the Securities Investment Trust and Consulting Act, approval is granted that securities investment trust enterprises (SITEs) concurrently operating securities investment consulting business, as well as securities investment consulting enterprises (SICEs) (excluding those operated concurrently by another enterprise), that have obtained permission from the Financial Supervisory Commission (FSC) to conduct discretionary investment business and have completed the reissuance of their business licenses may operate the following business:
    1. Accept a customer's appointment to provide securities investment consulting services with discretionary decision-making authority.
    2. Accept a customer's appointment to provide securities investment consulting services with discretionary decision-making authority, and to execute transactions on the customer's behalf.
    3. Accept a customer's appointment to provide securities investment analyses and recommendations, and to execute transactions on the customer's behalf.
  2. A SITE or SICE conducting business under Point 1 shall comply with the following provisions:
    1. "Customers" are limited to foreign professional institutional investors. "Professional institutional investor" means a professional institutional investor conforming to Article 4 of the Financial Consumer Protection Act.
    2. "Securities investment consulting services with discretionary decision-making authority" means a SITE or SICE accepting a customer's appointment to provide securities investment analysis and recommendations and agreeing with the customer that the customer will engage in securities investment conduct based on the securities investment analysis and recommendations provided by the SITE or SICE.
    3. "Execute transactions on the customer's behalf" means a SITE or SICE accepting a customer's appointment to engage in securities investment or trading of securities-related products on the customer's behalf.
    4. A SITE or SICE conducting business under Point 1 shall enter into a securities investment consulting contract with the customer, specifying all of the rights and obligations arising between it and the customer out of the appointment, including stipulations covering at least the basic investment and trading policies, the agreement on and changes to the scope of investment or trading, the granting of and restrictions on authorization for investment or trading decision-making, the designation of and changes to the securities broker, and the calculation of the compensation and fees for the appointment.
    5. If the business that a SITE or SICE conducts for a customer under Point 1 involves executing transactions on the customer's behalf, it may be exempted from the prohibitions against the aforesaid enterprises and personnel thereof acting on another person's behalf to engage in securities investment or trading of securities-related products as set out in Article 13, paragraph 2, subparagraph 2 of the Regulations Governing Securities Investment Consulting Enterprises, Article 13, paragraph 2, subparagraph 11 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises, and Article 15, paragraph 2, subparagraph 2 of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises.
    6. A SITE or SICE conducting business under Point 1 shall adopt in its internal control system operating principles to effectively prevent conflicts of interest, to ensure fair treatment of all customers. Those "operating principles to effectively prevent conflicts of interest" shall be governed mutatis mutandis by the provisions governing conflict of interest and control measures in FSC Order No. Financial-Supervisory-Securities-SITC-1060041612 of 2 January 2018.
  3. A SITE or SICE that conducts the business under Point 1 shall, by the fifth business day of each month, perform information reporting in accordance with the rules of the Securities Investment Trust & Consulting Association of the R.O.C.
  4. This Order is effective from this day forward. The 26 October 2023 FSC Order No. Financial-Supervisory-Securities-SITC-1120384682 is repealed from this day forward.
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