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Article 9
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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 proceeds from the ETNs are allocated and how the benchmark value is adjusted if of dividends on securities comprising the price index are allocated should be described. In the event of a Futures and Options Strategy ETN, the investment strategy and trading strategy of the index must be described.
- How the estimated benchmark value and benchmark value are calculated, disclosed, and reason of the difference between the value and trading price. In the event of allocation of proceeds from an ETN, how the ETN proceeds are allocated and how the benchmark value is adjusted should be described.
- How incomes will be allocated.
- What costs investors will bear, including itemized service fees charged by the securities firm and how they are calculated and charged.
- Purpose of funds and hedging strategies, and description of risk management measures.
- What risks investors are exposed to. In the event of a Futures and Options Strategy ETN, any impact of a futures or options price change on the index yield must be exemplified. In the event of allocation of proceeds from an ETN, the possible difference between the yield rate of the ETN and that of the underlying index must be exemplified.
- 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.
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