Regulations Governing Offshore Securities Branches Article 3

Except as otherwise provided by the competent authority, when an offshore securities branch conducts business with natural persons, juristic persons, government entities, or financial institutions within the territory of the Republic of China (ROC), it shall do so in accordance with the laws and regulations governing the conduct of business by securities firms. When the offshore securities branch conducts business with natural persons, juristic persons, government entities, or financial institutions outside the territory of the ROC, it shall conduct the business in accordance with the applicable rules set out by the competent authority.An offshore securities branch shall adopt an internal control system in accordance with the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets adopted by the FSC.An offshore securities branch shall conduct business operations in accordance with laws and regulations, its articles of incorporation, as well as the internal control system referred to in the preceding paragraph.