Regulations Governing Securities Firms Article 59

A securities firm, unless concurrently operated by a financial institution and subject to other laws or regulations, shall maintain an appropriate ratio between its regulatory capital and its operational risk equivalent amount, except as approved by the FSC.The appropriate ratio referred to in the preceding paragraph is called the regulatory capital adequacy ratio and its calculation method is the net amount of eligible regulatory capital divided by the operational risk equivalent amount.For those foreign securities firms having Taiwan branches, if their home-country head office have already calculated their regulatory capital adequacy ratio under their local laws with the operational risk of their Taiwan branch office already entered into the calculation, and have met the standard, they may send those documents and information relating to the regulatory capital adequacy ratio which have met the standard to the FSC to apply for a waiver of application of the provisions in this Chapter. However, unless specifically approved by the FSC, a monthly report on the head offices' regulatory capital adequacy ratio shall still be reported in accordance with Article 21, paragraph 4.