The following information should be covered in the summary description of the ETNs:
- Name of the securities firm.
- Brief description of the ETNs: Name, number of units to be issued, total value of notes to be issued, issue price, issue date, maturity date, issue period, name of the underlying index, relevant markets, benchmark value, whether incomes may be distributed, investment costs, redemption upon maturity, early redemption by securities firm and subscription and sellback by investors, etc.
- Description of underlying index: Important terms and conditions of index licensing contract, how the index is formed and calculated, past performance, the underlying index is consistent with the description under Article 2, paragraph 3 of the Regulations, how investors are notified of a material event relating to the underlying index that may have a material impact on their rights and interests when it has occurred and how information about this event is disclosed, and how dividends on the ETNs are allocated or how the benchmark value is adjusted if allocation of dividends on securities comprising the index should be described when calculating price index.
- Estimation of benchmark value and how benchmark value is calculated, disclosed, and reason of the difference between the value and trading price.
- How incomes will be allocated.
- What costs investors will bear, including description of management services charged by securities firm and how fees are calculated and charged.
- Purpose of funds and hedging strategies, and description of risk management measures.
- What risks investors are exposed to.
- How the ETNs are traded in the securities markets and how investors subscribe and sell back the notes. This information should at least cover sellback price being the benchmark value published after market close on the date of request, minimum sellback units, delivery schedule of funds and securities, etc.
- Method of redemption upon maturity. This information should at least cover the redemption schedule, redemption price being the benchmark value published after market close on the last trading day, last trading day being the second business day before the maturity date, date of delisting from the exchange or OTC market being the business day immediately after the maturity date, etc.
- Conditions and procedures for securities firm to issue follow-on notes, early redeem, suspend or resume subscription and stop subscription. This information should at least cover that the last trading day being the business day immediately after the date when conditions on early redemption (or mandatory redemption) are satisfied, redemption price being calculated using the benchmark value published after market close on the last trading day, redemption schedule, etc.
- Procedures for reporting revocation or rescission by competent authority to take effect, delisting from the exchange or OTC market, and required actions. This information should at least cover that the last trading day being the business day immediately after satisfaction of conditions on delisting from the exchange or OTC market, redemption price being calculated based on the benchmark value published after market close on the last trading day, a redemption plan to be promptly prepared and reported in writing to TWSE or GreTai if the institution calculating the underlying index announces to stop calculating the index, or the index licensing contract is terminated.
- Other required information.