Standards Governing the Establishment of Securities Investment Consulting Enterprises Article 40

Upon an application by an enterprise in another line of business to concurrently operate discretionary investment business or securities investment consulting business, the FSC may deny permission in any of the following circumstances:1. Any of the circumstances in Article 9, subparagraphs 2 to 5.2. The internal control system is not concrete enough or cannot be effectively implemented.3. Any violation of Article 68 of the SITC Act with respect to any department supervisor engaging in discretionary investment business or securities investment consulting business.4. Non-compliance with Article 15, paragraph 3, Article 32, paragraph 2, or Article 36, paragraph 5 or 6 with respect to paid-in capital.5. Denial is otherwise deemed necessary to protect the public interest.