Some business operators wish to provide services of specific securities business, for example, brokerage,  dealing and underwriting of equity instruments or private fund management, but are unable to operate such businesses with reasonable costs because the current licensing regime under the Ministerial Regulation is securities license which includes various groups of securities business and all securities which come with high application fees and do not answer the need of business operators who wish to provide specific services. 

The SEC has therefore revised the Ministerial Regulation on Securities Business undertaking by adding License Type E for securities business intermediary for equity instruments and Private Fund License. This will facilitate license application in line with business operators’ specific business model under more reasonable costs and without excessive burdens on business operators. Providing more license types also promotes business development and competition in the capital market. Meanwhile, investors can enjoy more choices of services from business operators who can serve their needs more efficiently. The Notification of the Ministerial Regulation on the new types of license has come into force since 3 March 2021. 

Additionally, the SEC has revised related regulations to allow the existing business operators to switch to License E or PF License in line with the business model they wish to pursue. In such case, the paid license fee will be calculated as a discount for the new license fee. Financial institutions established under specific law are also eligible for License E and PF License. In any case, business operators who have already obtained PF License may request Derivatives Fund Manager License, free of charge.    

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