Regulations Governing Securities Firms Article 58-2

A securities firm shall implement internal audit operations in its overseas branch offices in accordance with the securities firm's internal control system.A securities firm shall dispatch personnel to conduct on-site audits of its overseas branch offices at least once per year. Audit reports shall be submitted to the TWSE and forwarded by it to the FSC for recordation within 1 month from completion of the audit.A securities firm whose overseas branch office receives an audit report from a local competent authority or auditing agency shall file the report or any deficiencies discovered in the audit with the FSC for recordation within 10 days from the day next following the receipt of the report.Where any material contingency or incident of fraud, or disposition by a local competent authority, occurs with respect to an overseas branch office, a report shall be filed with the FSC within 2 days from the day next following the occurrence of the incident or receipt of the disposition notice from the local competent authority.