On Sep. 26, TAI FSC stipulated rules re securities firms' investments.
TAI FSC, TAI Justice stipulated rules regarding para 1 of article 18-1 of Regulations governing securities firms, re investment in financial business by securities firms.
TAI FSC, TAI Justice also stipulated rules regarding article 49, subpara. 7 of article 51, subpara. 9 of article 52, para. 2 of article 53, article 53-1 and para. 1 of article 54 of Regulations governing securities firms, re investment in foreign financial business.
Plus stipulated rules re para. 1 of article 30 of Regulations governing the establishment of internal control systems by service enterprises in securities and futures markets.
Follows TAI FSC Jun. 2023 issued regulations governing securities firms, see #178052.
Domestic Investment
Specifies requirements for securities firms to invest in securities and futures businesses that include TAI EXC, TAI DCC, TAI FEX, business in securities finance, investment consulting, investment trust, futures commission merchants, futures-related firms.
Securities firms shall seek approval from TAI FSC before investing in TAI EXC, TAI DCC, TAI FEX, and the shares held by such enterprises must not exceed 5%.
They shall seek TAI FSC's approval before investing in non-securities, futures, or finance-related undertakings and financial-related undertaking; requirements specified.
Specifies rules for securities firms to invest in a subsidiary to serve as a general partner of a venture capital enterprise or a private equity fund.
If a securities firm invests in securities, futures, finance enterprises, total investment amount of all enterprises shall not exceed 40% of the securities firm’s net worth.
The investment in financial related enterprises and non-securities, futures, and financial related enterprises shall not exceed 20% of the securities firm's net worth.
Foreign Investment
Stipulates rules when securities firms invest in foreign enterprises including holding companies, securities firms, securities finance enterprises, investment consulting firms.
As well as investment trust enterprises, futures merchants, venture capital firms, private equity funds, venture capital management enterprises, and fintech industries.
Stipulates rules if a securities firm invests in a foreign enterprise that is registered in a member state that is a signatory of the International Organization of Securities Commissions (IOSCO) and Multilateral Memorandum of Understanding (MMoU).
Effectiveness
The stipulated rules are effective from Sep. 26, 2024.
