General Explanation for the Amendment of Articles 6 and 8 of the Management Measures for Joint Marketing among Subsidiaries of Financial Holding Companies

The "Management Measures for Joint Marketing among Subsidiaries of Financial Holding Companies" (hereinafter referred to as these Measures) were promulgated on October 21, 1999, pursuant to the authorization of Article 43 of the Financial Holding Company Act, and have since been amended five times. To expand the promotion channels for insurance trusts and elderly care trusts handled by the trust industry, and to enhance the synergies of cross-business operations, Articles 6 and 8 of these Measures are hereby amended. The key points of the amendment are as follows:

1. Relaxation is granted for "insurance trusts" to be jointly marketed by subsidiaries other than the insurance subsidiary of the financial holding company, and relaxation is granted for the trust business items eligible for joint marketing of "elderly care trusts." In conjunction with the aforementioned relaxation, the text of the third paragraph is appropriately revised (Amended Article 6).

2. In conjunction with the relaxation of "elderly care trusts" as eligible trust business items for joint marketing under Article 6, the requirement for staff marketing only a single trust product is also relaxed. Due to the simple nature of the trust business, the number of training hours and the training institutions for such staff regarding the single trust product shall be determined separately by the Trust Industry Association of the Republic of China, and they are not required to comply with the education and training hour regulations for general trust business personnel (Amended Article 8).

Comparison Table of Amended and Current Text for Articles 6 and 8 of the Management Measures for Joint Marketing among Subsidiaries of Financial Holding Companies

Amended Text	Current Text	Explanation
Article 6; ; The scope of business in other industries that subsidiaries of a financial holding company may engage in when conducting joint marketing is as follows:; ; 1. Banking Business:; (1) Opening of deposit accounts.; (2) Promotion of credit card business and forwarding of cards on behalf.; (3) Collection and payment of utility fees and other taxes.; (4) Collection of items on behalf of the bank's main office business.; ; 2. Securities Business:; (1) Opening of accounts for securities brokerage business or securities trading auxiliary business.; (2) Sales and buyback of domestic funds on behalf.; (3) Installation of online order terminals, where investors place orders with securities brokers or securities trading auxiliaries.; (4) Collection of items on behalf for securities-related business.; ; 3. Futures Business:; (1) Opening of accounts for futures brokerage business or futures trading auxiliary business.; (2) Installation of online order terminals, where futures traders place orders with futures brokers or futures trading auxiliaries.; (3) Collection of items on behalf for futures-related business.; ; 4. Insurance Business:; (1) Solicitation of insurance products approved or filed with this Commission.; (2) Installation of facilities connected to the Compulsory Automobile Liability Insurance Premium Inquiry Center, and upon establishment of the insurance contract, delivery of documents containing insurance clauses, insurance certificates, and insurance marks to the policyholder.; (3) Collection of items on behalf for insurance-related business.; ; 5. Trust Business:; (1) Promotion of insurance trusts or elderly care trusts handled by banks and securities firms engaged in trust business.; (2) Collection of items on behalf for insurance trusts or elderly care trusts handled by banks and securities firms engaged in trust business.; ; When conducting joint marketing, it is limited to the businesses specified in Item 1 and Item 3 of Paragraph 4 of the preceding paragraph.	Article 6; ; The scope of business in other industries that subsidiaries of a financial holding company may engage in when conducting joint marketing is as follows:; ; 1. Banking Business:; (1) Opening of deposit accounts.; (2) Promotion of credit card business and forwarding of cards on behalf.; (3) Collection and payment of utility fees and other taxes.; (4) Collection of items on behalf for the bank's main office business.; ; 2. Securities Business:; (1) Opening of accounts for securities brokerage business or securities trading auxiliary business.; (2) Sales and buyback of domestic funds on behalf.; (3) Installation of online order terminals, where investors place orders with securities brokers or securities trading auxiliaries.; (4) Collection of items on behalf for securities-related business.; ; 3. Futures Business:; (1) Opening of accounts for futures brokerage business or futures trading auxiliary business.; (2)
Installation of online order terminals, where futures traders place orders with futures brokers or futures trading auxiliaries.; (3) Collection of items on behalf for futures-related business.; ; 4. Insurance Business:; (1) Solicitation of insurance products approved or filed with this Commission.; (2) Installation of facilities connected to the Compulsory Automobile Liability Insurance Premium Inquiry Center, and upon establishment of the insurance contract, delivery of documents containing insurance clauses, insurance certificates, and insurance marks to the policyholder.; (3) Collection of items on behalf for insurance-related business.; ; When conducting joint marketing, it is limited to the businesses specified in Item 1 and Item 3 of Paragraph 4 of the preceding paragraph.; ; Insurance trusts handled by banks and securities firms engaged in trust business may be promoted and collected on behalf by the insurance subsidiary of the same financial holding company. The payment types, operational procedures, and other matters to be followed for the aforementioned insurance trusts shall be drafted by the Trust Industry Association of the Republic of China and submitted to this Commission for approval.	1. To expand the promotion channels for insurance trusts and elderly care trusts handled by the trust industry, and to enhance the synergies of cross-business operations, relaxation is granted for insurance trusts to be jointly marketed by subsidiaries other than the insurance subsidiary, and relaxation is granted for "elderly care trusts" to be eligible trust business items for joint marketing. Therefore, Item 5 of Paragraph 1 is added.; ; 2. In conjunction with the aforementioned relaxation, the text of the third paragraph is revised.
Article 8; ; Business personnel conducting joint marketing shall comply with the relevant regulations and administrative orders of this Commission regarding the qualifications or licenses required for each business, and complete the registration or filing procedures. However, for those handling only the joint marketing of a single trust product under Item 5 of Paragraph 1 of Article 6 (insurance trusts or elderly care trusts), the pre-service and in-service training hours every three years related to insurance trusts or elderly care trusts shall each reach at least three hours. The training institutions and hours shall be determined separately by the Trust Industry Association of the Republic of China, and the provisions of Article 16, Paragraphs 2 and 3 of the Criteria for Qualifications of Heads of Trust Industries and the Knowledge or Experience in Trust Specialties Required for Management Personnel shall not apply.; ; The code of conduct, rights, and obligations of the business personnel in the preceding paragraph when conducting business in other industries shall be handled in accordance with the relevant regulations of the competent authority of the other industry. If violations occur during the execution of business, penalties may be imposed in accordance with the laws and regulations of the other industry.; ; When business personnel conducting joint marketing handle banking deposit account opening business, they shall undergo relevant professional training courses.; ; When personnel of a financial holding company concurrently serve as joint marketing business personnel for subsidiaries, their concurrent service shall not involve conflicts of interest or violate the internal control of the financial holding company and its subsidiaries.	Article 8; ; Business personnel conducting joint marketing shall comply with the relevant regulations and administrative orders of this Commission regarding the qualifications or licenses required for each business, and complete the registration or filing procedures. However, for those handling only the joint marketing of insurance trusts under Paragraph 3 of Article 6, the pre-service and in-service training hours every three years related to insurance trusts shall each reach at least three hours. The training institutions and hours shall be determined separately by the Trust Industry Association of the Republic of China, and the provisions of Article 16, Paragraphs 2 and 3 of the Criteria for Qualifications of Heads of Trust Industries and the Knowledge or Experience in Trust Specialties Required for Management Personnel shall not apply.; ; The code of conduct, rights, and obligations of the business personnel in the preceding paragraph when conducting business in other industries shall be handled in accordance with the relevant regulations of the competent authority of the other industry. If violations occur during the execution of business, penalties may be imposed in accordance with the
laws and regulations of the other industry.; ; When business personnel conducting joint marketing handle banking deposit account opening business, they shall undergo relevant professional training courses.; ; When personnel of a financial holding company concurrently serve as joint marketing business personnel for subsidiaries, their concurrent service shall not involve conflicts of interest or violate the internal control of the financial holding company and its subsidiaries.	1. Considering that when handling joint marketing of a single trust product, the scope of trust regulations and business practices to be understood is limited to that trust product and does not involve other trust businesses, there is no need to comply with the education and training hour regulations for general trust business personnel. Therefore, in conjunction with the relaxation of "elderly care trusts" as eligible trust business items for joint marketing under Article 6, the text of the first paragraph is revised.; ; 2. For those handling two or more trust products, their business nature is the same as that of general trust business personnel. According to the first part of Paragraph 1, "shall comply with the relevant regulations and administrative orders of this Commission regarding the qualifications or licenses required for each business, and complete the registration or filing procedures," the qualifications for joint marketing trust product business personnel shall apply to the "Criteria for Qualifications of Heads of Trust Industries and the Knowledge or Experience in Trust Specialties Required for Management Personnel."