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1.These Guidelines are enacted in accordance with the 23 August 2024 order Financial-Supervisory-Securities-Firms-11303487861 of the Financial Supervisory Commission (Competent Authority).
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2.Where a offshore foreign institutional investorapplying for registration in accordance with Article 10 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals (Overseas Chinese and Foreign Nationals Investment Regulations) or having obtained the approval of the Competent Authority or Taiwan Stock Exchange Corporation (TWSE) for investing in domestic securitiesdesignates a bank or securities firm approved by the Competent Authority as its custodian institutionin accordance with Article 17 of the Overseas Chinese and Foreign Nationals Investment Regulations to handle related matters such as custodianship of funds and certificates relating to securities investments, confirmation of trades, transaction settlement, and reporting of information, these Guidelines are applicable to such investorwhen it designates two or more custodian institutions.
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3.Matters involving securities transactions and futures transactions with which a offshore foreign institutional investor designating two or more custodian institutions shall comply are governed by, in addition to these Guidelines, securities and exchange laws and regulations, futures transactions laws and regulations, the Overseas Chinese and Foreign Nationals Investment Regulations, Directions for Futures Trading by Overseas Chinese and Foreign Nationals (Overseas Chinese and Foreign Nationals Futures Trading Directions), and the relevant rules, regulations, public announcements and letter directives etc. of the TWSE, Taiwan Futures Exchange Co., Ltd.,Taipei Exchange, and Taiwan Depository & Clearing Corporation (TDCC).
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4.Aoffshore foreign institutional investor designating two or more custodian institutions shall designate one primary custodian institution and not more than three secondary custodian institutions and shall apply to the TWSE for registration in accordance with the Operation Directions for Applications by Overseas Chinese, Foreign Nationals, and Mainland Area Investors for Registration to Invest in Domestic Securities or Trade Domestic Futures.
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5.Aoffshore foreign institutional investor designating two or more custodian institutions shall comply with the following regulationsupon the approval of its application for registration of its designation of two or more custodian institutions (Investor Designating Multiple Custodian Institutions):
(1)The caps on the funds to be utilized by an Investor Designating Multiple Custodian Institutions, on the outward remittancesby such investor of proceeds from the sale of borrowed securities, and caps on the sales of securitiesborrowed by privately placed mutual funds and unit trusts, as under Article 4, paragraph 2, Article 14, paragraph 1, and Article 21 of the Overseas Chinese and Foreign Nationals Investment Regulations, shall be calculated based on the assets held in custody by the primary custodian institution and secondary custodian institutions as entrusted.
(2)When an Investor Designating Multiple Custodian Institutionsapplies for exchange settlement of proceeds from its securities investments in accordance with Article 6, paragraph 2 of the Overseas Chinese and Foreign Nationals Investment Regulations, whether there are earnings may be determined on the basis of the positions of thesecuritiesheld in custody by the primary custodian institution and secondary custodian institutions as entrusted.
(3)With regard to its utilization of funds and securities inventories under Article 22 of the Overseas Chinese and Foreign Nationals Investment Regulations, an Investor Designating Multiple Custodian Institutions shall have its primary custodian institution and secondary custodian institutions establish separate accounts, and the previous day's inward and outward remittances shall be reported to the competent foreign exchange authority. Within 10 days of the end of each month, the primary custodian institution and secondary custodian institutions shall separately produce a statement of trades, inward and outward remittances of funds, and securities inventories for the previous month, to be reported to the competent foreign exchange authority and at the same time provided to the TWSE for registration.
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6.The TDCC shall, within three days of the commencement of the period of suspension of account transfer, notify the securities issuers of the data that it has compiled in accordance with Article 32 of the Regulations Governing Book-Entry Operations for Centrally Deposited Securitiesin connection with the owners of the securities held in its custody.The relevant data may include particulars of the centrally deposited accounts of the primary custodian institution that holds no position.
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7.Apublic company may, based on the content of the TDCC notice, enterin the shareholders’ register the name of the dedicated account of the primary custodian institutionof the Investor Designating Multiple Custodian Institutions, including information on account opening or changes in the mailing address etc.
A securities issuer as in Article 4, paragraph 1 of the Overseas Chinese and Foreign Nationals Investment Regulations is governed mutatis mutandis by the preceding paragraph concerning the use of the name of the dedicated account of the primary custodian institution.
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8.An Investor Designating Multiple Custodian Institutions engaging in futures trades shall comply with the following provisions:
(1)designate two or more agents as in Point 12 of the Overseas Chinese and Foreign Nationals Futures Trading Directions, and shall designate the primary custodian institution as the primary agent and a secondary custodian institution as a secondary agent
(2)With regard to the balance in New Taiwan dollars resulting from the cumulative realized New Taiwan Dollar profits gained combined with the amounts under Point 11, paragraphs 2 and 3 of the Overseas Chinese and Foreign Nationals Futures Trading Directions, the amounts in the various futures accounts as reported by the primary agent and secondary agent shall be calculated in the aggregate. Such amount as in an individual trader account or an individual omnibus account may not exceed NTD 300 million. The primary agent shall notify the Investor Designating Multiple Custodian Institutions of the aforementioned balance.
(3)Where the balance in New Taiwan dollars as mentioned in the preceding subparagraph exceeds the cap, the primary agent shall notify the Investor Designating Multiple Custodian Institutionsto act in accordance with the time limit for exchange settlement and the balance requirement as stipulated inPoint 11, paragraph 6 of the Overseas Chinese and Foreign Nationals Futures Trading Directions.
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9.These Guidelines shall take effect after having been submitted to and approved by the Competent Authority. Subsequent amendments thereto shall be effected in the same manner.
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