In order to ensure regulatory consistency regarding overseas securities trading of OBUs and OSUs of financial industries and allow these business entities to develop business development of offshore financial centers under the same regulatory framework, the FSC has set the Directions for Offshore Banking Branches Conducting Securities Business to relguate OBUs concurrently conducting securities business.
According to the Directions, OBUs applying for conducting securities brokerage, underwriting, and proprietary trading business shall obtain the FSC’s approval pursuant to the related regulatory requirements set by the Securities and Exchange Act. For banks which have conducted such business activities without approval, they should submit applications for approval within 6 months after introduction of the Directions. Moreover, OBUs shall establish and implement policies related to customer rights protection, risk control and internal control system for conducting securities business.