Regulations Governing Foreign Exchange Business of Securities Enterprises Article 17

Unless otherwise provided in these Regulations, a securities enterprise that engages in foreign exchange business involving outward and inward remittance of fund or foreign exchange settlement against NTD shall deal with an authorized bank in accordance with the “Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions” (hereinafter referred to as the “Regulations for Declaration”), “Directions Governing Banking Enterprises for Operating Foreign Exchange Business” (hereinafter referred to as “Operating Directions”), and “Directions for Banking Enterprises on Assisting Customers to Declare Foreign Exchange Receipts and Disbursements or Transactions”.Unless special provisions apply to the foreign exchange settlement, securities enterprises shall observe the following rules when handling receipt/payment associated with their foreign exchange business:1.Where the receipt/payment of the foreign exchange business is in foreign currency, the customer shall carry out foreign exchange settlement at an authorized bank in accordance with the “Regulations for Declaration”, or the payment may be transferred from the customer’s foreign exchange deposit account;2.When accepting orders to trade foreign securities, conducting wealth management business involving foreign exchange by means of trust, or acting as a master agent or its mandated sub-distributors of an offshore fund institution to purchase or redeem offshore funds in NTD, the securities enterprise shall carry out foreign exchange settlement at an authorized bank in accordance with the “Regulations for Declaration”; and3.Foreign exchange settlement shall be carried out at an authorized bank based on the exact amount of the transaction. Unless with the Bank’s approval, settlement on a net basis after offset of receipt/payment is not allowed.