Regulations Governing Securities Firms Article 46

Securities firms applying for merger shall meet the following conditions:1. The regulatory capital adequacy ratio reached 200 percent or more each of the 6 months before the merger.2. The pro forma consolidated regulatory capital adequacy ratio shall reach 200 percent the month before the application.3. Have not been sanctioned under Article 66, subparagraphs 2 to 4 of the Act or under paragraph Article 100, paragraph 1, subparagraphs 2 to 4 of the Futures Trading Act or under Article 103, subparagraphs 2 to 5 of the Securities Investment Trust and Consulting Act within the last 6 months.4. In the most recent 1 year, the evaluation results of internal auditing by the TWSE and TPEx of the condition of implementation of the internal control operations of the applicant's head office and branches, have found it to be satisfactory and meeting the standards set by the FSC.In the case that the securities firm applying for merger does not meet the criteria in the preceding paragraph, the FSC may approve the application as a special case based on overall considerations such as facilitating the healthy development of the securities market and increasing the competitiveness of securities firms.