Order Regarding Securities Trading Act Article 15, Paragraph 2

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Order Regarding Securities Trading Act Article 15, Paragraph 2. (Jin Guan Zheng Quan Zi No. 1150356483)

2026-10-06

Financial Supervisory Commission Order
Date of Issuance: October 6, 2026 (Republic of China Year 115) Document Number: Jin Guan Zheng Quan Zi No. 1150356483

1. According to Article 15, Paragraph 2 of the Securities and Exchange Act, securities proprietary dealers may purchase the following investment targets, provided that investment targets under Items 7 and 8 are limited to comprehensive securities firms that simultaneously operate securities brokerage, underwriting, and proprietary trading businesses:

(1) Securities privately placed by publicly issued stock companies in accordance with Article 43-6 of the Securities and Exchange Act.

(2) Beneficiary securities privately placed by publicly issued stock companies in accordance with Paragraph 3 of Article 17 of the Financial Assets Securitization Act, or asset-based securities privately placed in accordance with Article 101 of said Act.

(3) Newly issued shares by unlisted (over-the-counter) publicly issued stock companies in accordance with Paragraph 1 of Article 22 of the Securities and Exchange Act.

(4) Newly issued shares by publicly issued stock companies in accordance with Paragraph 1 of Article 22 of the Securities and Exchange Act, issued prior to initial listing (over-the-counter) and sold publicly via competitive auction.

(5) Convertible corporate bonds issued by listed (over-the-counter) companies in accordance with Paragraph 1 of Article 22 of the Securities and Exchange Act and sold publicly via competitive auction.

(6) Unlisted (over-the-counter) publicly issued stock publicly offered to non-specific persons by securities holders in accordance with Paragraph 3 of Article 22 of the Securities and Exchange Act.

(7) Newly issued shares by companies registered on the Creation Board (Chuang Gui Ban) in accordance with the Regulations Governing the Management of the Creation Board of the Taiwan OTC Center, Inc., issued during the period of registration on the Creation Board.

(8) Newly issued shares by domestic issuers or foreign issuers not yet registered on the GPM Board, where the securities firm acts as the lead underwriter assisting in the application for listing on the Innovation Board or First Listing on the Innovation Board, issued from the date of reporting the basic data of the assisted company to the Taiwan Stock Exchange until the submission of the application for stock listing.

2. The amount and operational procedures for securities proprietary dealers to purchase the investment targets mentioned in the preceding paragraph shall comply with the following regulations and be included in internal audit items for strengthened verification:

(1) The amount purchased for any single company's investment targets mentioned in the preceding paragraph shall not exceed 5% of the securities firm's net value; the total amount purchased for the investment targets mentioned in the preceding paragraph shall not exceed 10% of the securities firm's net value; the total amount purchased for the investment targets under Items 7 and 8 of the preceding paragraph shall not exceed 5% of the securities firm's net value, respectively. All the aforementioned situations shall comply with Paragraph 2 of Article 18 of the Securities Firms Management Rules.

(2) The total amount purchased for any single company's investment targets mentioned in the preceding paragraph shall not exceed 10% of that company's single issuance or total issued amount. However, the purchase of investment targets under Items 7 and 8 of the preceding paragraph is exempt from the 10% limit of that company's single issuance total.

(3) The most recent capital adequacy ratio, after calculating the addition of the amount purchased for the investment targets mentioned in the preceding paragraph, shall not be less than 200%.

(4) The decision-making procedure for purchasing the investment targets mentioned in the preceding paragraph shall follow the operational procedures for proprietary trading of securities, and the content of the investment targets mentioned in the preceding paragraph shall be logged in the "Securities Firms Declaration Single Window" within two days from the date the event occurs.

(5) If the transaction amount for purchasing the investment targets mentioned in the preceding paragraph reaches the information disclosure requirements specified in Chapter 3 of the Guidelines for Publicly Issued Companies to Acquire or Dispose of Assets, it must be approved by the board of directors, and the announcement, declaration, and disclosure procedures under said Guidelines shall be followed.

(6) The purchase of the investment targets mentioned in the preceding paragraph shall not involve irregular trading practices or affect the sound operation of financial and business affairs.

(7) The types and scope of purchasing the investment targets under Items 7 and 8 of the preceding paragraph shall be resolved by the board of directors. Prior to purchasing the investment targets under Items 7 and 8 of the preceding paragraph, the most recent financial statements audited or reviewed by certified public accountants of the target company shall be obtained as a reference for evaluating the transaction price. Additionally, if the transaction counterparty is a related party, a valuation report issued by a professional appraiser or an opinion from a certified public accountant regarding the reasonableness of the transaction price shall be obtained.

3. Securities firms that simultaneously operate proprietary trading and underwriting businesses shall comply with Article 84 of the Securities and Exchange Act when purchasing the investment targets mentioned in Item 1, and shall not participate in the competitive auction for publicly offered sales of newly issued shares by GPM-listed companies for which they serve as the recommending securities firm to apply for initial listing (over-the-counter).

4. This Order takes effect from the date of issuance; the Financial Supervisory Commission Order Jin Guan Zheng Quan Zi No. 1140381481 dated April 23, 2025 (Republic of China Year 114), is hereby repealed effective immediately.

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Last Updated: 2026-10-06

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