||Amended on 30 May 2022 per Order No. Jin-Guan-Bao-Shou-Zi- 11104920993 of the Financial Supervisory Commission
||Article 19 The insurer shall meet the following qualifications in selling the investment-linked insurance with discretionary investment services:
1. The ratio of proprietary capital to risk capital in the recent year shall comply with the adequacy ratio regulated in paragraph 1 of article 143-4 of the Act.
2. Having not been subject to major sanction and disciplinary action by the competent authority in the recent year, or if it has, concrete improvement actions have been taken to remedy the violation and recognized by the competent authority.
3. Value at Risk has been applied to the risk assessment for their foreign investment, and the risk assessment shall be conducted at least once a week.
4. A risk control committee in the board of directors, or a risk control division with a risk chief or an executive in the equivalent rank shall be placed in a company to take full charge of overall risk control.
5. Ranked in the top eighty percent in the past year in terms of the results of the Treating Customer Fairly Principle evaluation of life insurance companies. The preceding provision does not apply to a life insurance company that could provide reasonable
explanation (for not ranking in the top eighty percent) and such explanation is approved by the competent authority.
The major sanction and disciplinary action as prescribed in Subparagraph 2 of the preceding Paragraph refer to Article 2 of the Regulations Governing Public Disclosure by the Financial Supervisory Commission of Material Enforcement Actions for Violations of
The value at risk (VaR) as referred to in subparagraph 3, Paragraph 1 shall be calculated on weekly basis with at least three years of sampling period, or on daily basis with at least one year of sampling period. The sample data shall be updated at least
once a week and the 10-trading-day VaR shall be calculated with 99% confidence level at least. In addition, monthly back-test shall be conducted.
Prior to applying for concurrently engaging in the discretionary investment business in accordance with Securities Investment Trust and Consulting Act, the insurer shall meet the qualification listed in paragraph 1 and approved by the competent authority.