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Title：

Operation Directions for Applications by Overseas Chinese, Foreign Nationals, and Mainland Area Investors for Registration to Invest in Domestic Securities or Trade Domestic Futures  CH

Amended Date： 2024.08.26 
Categories： Securities Exchange Market > Trading > Securities Transaction
Article Content Content Search Article No. Search Legal Basis Amended Article Attachment Legislative History Chinese

Title： Operation Directions for Applications by Overseas Chinese, Foreign Nationals, and Mainland Area Investors for Registration to Invest in Domestic Securities or Trade Domestic Futures(2015.09.02)
Date：
1     Registration of Offshore Overseas Chinese and Foreign Nationals
  1. New addition
    1. Basis:
      Article 10 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals (hereinafter referred to as "the Regulations"), Point 7 of the Directions for Futures Trading by Overseas Chinese and Foreign Nationals (hereinafter referred to as "the Directions"), Article 77-4 of the Operating Rules of the Taiwan Stock Exchange Corporation (TWSE), and Article 44-4 of the Operating Rules of the Taiwan Futures Exchange Corporation (TAIFEX).
    2. Qualification:
      The term "offshore overseas Chinese and foreign nationals" means overseas Chinese, foreign natural persons and foreign institutional investors outside the territory of the Republic of China (ROC).
      1. Offshore overseas Chinese and foreign natural persons mean those who have a nationality other than the Mainland Area, are at least 20 years old and hold an identification certificate.
      2. Offshore foreign institutional investors mean those institutions incorporated outside the territory of the ROC, according to the laws and regulations of the locale.
    3. Application Documents
      1. Registration Application Form: The agent (or the representative) of the offshore overseas Chinese and foreign nationals shall fill out a "Application Form for Registration of Offshore Foreign Institutional Investors to Invest in ROC Securities or Trade ROC Futures" as in Form 1-1-1 and "Application Form for Registration of Offshore Overseas Chinese and Foreign Natural Persons to Invest ROC in ROC Securities or Trade ROC Futures," Form 1-1-2.
      2. Documents Enclosed: When applying for registration, offshore overseas Chinese and foreign nationals shall prepare the following documents:
        1. Power of attorney to agent or letter of appointment to representative.
        2. Identification certificates
          1. Offshore Overseas Chinese and Foreign Natural Persons: passport, identification certificate or other documents with a photo attached which can prove the applicant's nationality or status.
          2. Offshore Foreign Institutional Investors
            1. Non-fund Type
              1. Corporation
                Certificate of incorporation issued by a local governing authority such as a company registration certificate; if there is no company registration certificate, the following documents may serve as replacement:
                1. The articles of incorporation which the local governing authority has on record.
                2. Qualification certificate issued by the local tax authorities.
              2. Other organizations established according to law, such as government investment institutions, non-profit organizations, foundations and academic organizations. The certificate or the letter from the local governing authority approving their establishment should be presented; if there is no such certificate or letter, the following documents may serve as replacement:
                1. The articles of incorporation which the local governing authority has on record.
                2. The regulations or rules enacted as the basis for the establishment of the applicant.
                3. Qualification certificate issued by the local tax authorities.
            2. Type of Fund
              1. The certificate or the letter from the local governing authority approving its establishment should be presented; if there is no such certificate or letter, any of the following documents may serve as replacement:
                1. The record published in the web site of the local governing authority showing that the fund has completed its establishment registration.
                2. Document, such as an offering prospectus, trust contract, or memorandum for private placement, that can serve to show that the local governing authority has accepted the filing or has created a record.
                3. Qualification certificate issued by the local tax authorities.
              2. In the case of an applicant for registration in the form of a subfund, if it is unable to provide documents as provided in point (i), it shall substitute the following documents:
                1. Document in compliance with point (i) for the parent fund.
                2. Document specifying the legal or regulatory basis of the establishment of the subfund, and sufficient to prove the relationship between the parent fund and the subfund.
          3. When necessary, the TWSE or TAIFEX may require the offshore foreign institutional investors of the fund type which checks "hedging" or "investment" and "hedging" in Point 2 of the Declaration Items in the Registration Application Form to provide its articles of incorporation or the establishment contract, or documents explaining the investment or trading strategies.
    4. Flow of Processing
      1. Transmission of the Registration Application Form: Once the agent (or the representative) of the offshore overseas Chinese or foreign national applying for registration transmits the Registration Application Form online through the TWSE system, the TWSE will, after on-line review of information transmitted through computer has been completed, issue the "Certificate of Completed Registration for Offshore Overseas Chinese and Foreign Nationals," Form 1-2.
      2. Relevant Materials: The agent (or the representative) of the offshore overseas Chinese or foreign national shall deliver to the TWSE the English version of the registration form signed personally by the applicant for registration (identical to the contents of the information transmitted to TWSE), along with the Chinese version of the registration form and the certificate for registration completion for recordation. The TWSE will review these documents periodically. The agent (or representative) of the offshore overseas Chinese or foreign national shall retain a full set of the documents provided in Point 2.C "Application Documents."
      3. Denial of registration: The TWSE or TAIFEX may deny the registration if any of the following circumstances applies to the offshore overseas Chinese or foreign national applying for registration:
        1. The registration documents or the particulars they contain are found to be fraudulent or untrue;
        2. An incomplete set of registration documents is submitted or the documents have not been fully filled out, and the applicant has failed, upon notification by TWSE, to supplement the documents within 5 days; or
        3. There is a serious violation of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals or the laws and regulations concerning securities or futures administration.
  2. Amendment
    If any content of the registration items of the offshore Chinese or foreign national has changed, the agent (or the representative) should apply to the TWSE for amendment of the registration.
    1. Application:
      1. Name Change
        Amendment Registration Application Form: The agent (or the representative) of the offshore Chinese or foreign national should transmit the "Registration Application Form for Name Change by Offshore Overseas Chinese and Foreign Nationals" as in Form 1-3-1 online through the TWSE system. Once no error is found in an online check through the TWSE system, the agent can print out the "Certificate of Amendment Registration Completion for Offshore Overseas Chinese and Foreign Nationals," Form 1-4, with which the agent can apply to securities brokers or futures commission merchants for name change. The related documents need not be filed for recordation with the TWSE, but the TWSE or TAIFEX may require the applicant to provide related information when necessary.
      2. Change of the Agent or the Representative
        Amendment Registration Application Form: The agent (or the representative) of the offshore Overseas Chinese or foreign national should transmit the "Registration Form for Change of the Agent or Representative by Offshore Overseas Chinese and Foreign Nationals," Form 1-3-2, online through the TWSE system. Once a check is performed online in the TWSE system and no error is found, the agent can print out the "Certificate of Amendment Registration Completion for Offshore Overseas Chinese and Foreign Nationals," Form 1-4, with which the agent can apply to securities brokers or futures commission merchants for the name change. The related documents need not be filed for recordation with the TWSE, but the TWSE or TAIFEX may require the applicant to provide related information when necessary.
      3. Amendment of Other Items: Except the above-mentioned changes, for changes in Item Five of the registration form, the background information of the shareholders, and Item Six, other basic information, the agent (or the representative) of the offshore overseas Chinese or foreign national may make the amendment through the TWSE system on his own initiative, and the relevant documents and information need not be sent to the TWSE for recordation.
  3. Cancellation
    1. Application for Cancellation by Overseas Chinese or Foreign Nationals:
      1. Cancellation Registration Form: Where the agent of the offshore overseas Chinese or foreign national applying for cancellation is a custodian institution, it should transmit the "Registration Cancellation Application Form for Offshore Overseas Chinese and Foreign Nationals," Form 1-5, online through the TWSE system, and fax a copy of the power of attorney for tax payment or the letter of consent issued by the Taipei National Tax Administration to the TWSE. Then the agent can print out the "Certificate of Completed Registration Cancellation for Offshore Overseas Chinese and Foreign Nationals," Form 1-6, online through the TWSE system, and can go to the securities firm or futures commission merchant to cancel the account.
      2. Where the agent of the offshore overseas Chinese or foreign national applying for cancellation is a futures commission merchant, it should transmit the "Application Form for Cancellation of Registration of Offshore Overseas Chinese and Foreign Nationals," Form 1-5, online through the TWSE system, and fax a copy of Form 1-5 to the TWSE for verification. Then the agent may print out the completed Certificate of Cancellation Registration, Form 1-6, and proceed to the futures commission merchant to cancel the account.
    2. Cancellation of registration by the TWSE and TAIFEX:
      1. If the overseas Chinese or foreign national has violated Article 11, paragraph 2 of the Regulations, or Point 8, paragraph 2 of the Directions, or is found by a competent authority governing relevant business to have violated relevant laws or regulations, the TWSE or TAIFEX may cancel the registration, and notify the securities firm or futures commission merchant where the account has been opened to proceed in accordance with the following provisions:
        1. The securities firm may not accept buy orders, provided that this restriction does not apply where the buy orders are for the purpose of returning borrowed securities in securities borrowing and lending transactions. The securities broker will cancel the account after the account balance has been settled.
        2. The futures commission merchant shall immediately stop accepting trading orders, provided that this restriction does not apply to orders for disposing of existing transactions. The futures commission merchant shall immediately cancel the account after the claims and obligations of the account have been fully settled.
      2. When 6 full months have passed after the cancellation of the account of the overseas Chinese or foreign national by the TWSE or TAIFEX and the cause for the cancellation has been extinguished or improved, the agent of the overseas Chinese or foreign national may submit by letter relevant data to the TWSE to apply for restoration of registration, provided that if the circumstances are severe, the required time period before restoration after the cancellation may be extended to 2 years, or the cancellation may be made permanent. If the reason for the cancellation involves violation of foreign exchange related laws and regulations, the matter shall be referred to the competent authority, which shall consult the opinion of the competent authority governing foreign exchange business.
2     Registration Application for Onshore Overseas Chinese and Foreign nationals
  1. New addition
    1. Basis:
      Article 10 of the Regulations, Point 7 of the Directions, Article 77-4 of the Operating Rules of the Taiwan Stock Exchange Corporation, and Article 44-4 of the Operating Rules of the Taiwan Futures Exchange Corporation.
    2. Qualifications:
      The term "onshore overseas Chinese and foreign nationals" means overseas Chinese, foreign natural persons and foreign institutional investors inside the territory of the ROC.
      1. Onshore Overseas Chinese and Foreign natural persons: Persons at least 20 years old, residing in the territory of the ROC with an Overseas Compatriot Identity Certificate, or holding an R.O.C. passport with an Overseas Compatriot Identity Endorsement, or Alien Resident Certificate.
      2. Onshore Foreign Institutional Investors: Foreign juristic person which sets up a branch office in the territory of the ROC.
    3. Application Documents
      1. Registration Form: The onshore overseas Chinese or foreign national should fill out the "Registration Form for Onshore Overseas Chinese and Foreign Nationals to Invest in ROC Securities or to Trade ROC Futures," Form 2-1.
      2. Documents Enclosed: The onshore overseas Chinese or foreign national applying for registration should prepare the following documents:
        1. Onshore Overseas Chinese and Foreign Natural Persons: Alien Resident Certificate (or Overseas Compatriot Identity Certificate, or ROC passport with an Overseas Compatriot Identity Endorsement) and other identification with identifiable features (such as national health insurance card, passport, driver's license or student identity card etc.).
        2. Onshore Foreign Institutional Investors: The Recognition Certificate from the Ministry of Economic Affairs, company registration certificate, the identification certificate or the Alien Resident Certificate or passport of the responsible person.
    4. Flow of Processing
      1. The onshore overseas Chinese or foreign national applying for registration should prepare the documents listed under Point 2.1.C.b above and entrust the securities brokerage firm or futures commission merchant to apply to the TWSE.
      2. Review of Registration Form: Once the securities brokerage firm or futures commission merchant transmits the registration form filled out online through the TWSE system, the TWSE will immediately review each item of the transmitted material and provide the result of the registration application online, which is classified as follows:
        1. Registration Completed: If each item of the transmitted material has been reviewed through computer and the nationality is not of the Mainland Area, the process of registration application to the TWSE is complete. After the securities firm or futures commission merchant prints out the registration application form and hands it over for personal signature of the onshore overseas Chinese or foreign national, and prints out the Certificate of Completed Registration for Onshore Overseas Chinese and Foreign Nationals, Form 2-2, they can handle the account opening. After completing the registration, the securities firm or futures commission merchant does not need to deliver to the TWSE the relevant documents and material of the onshore overseas Chinese or foreign national. The securities firm should keep copies of the documents mentioned in (3), Application Documents, the registration application form signed by the applicant, and the Certificate of Registration Completion.
        2. Duplicate Registration: The material transmitted is exactly the same as the English name, nationality, and date of birth as another foreign investor already approved or completing registration. In this case, the securities firm or futures commission merchant shall submit an application to the TWSE in writing, along with the documents mentioned in Point 2A(3)b, for cancellation of the duplicate registration.
      3. Denial of registration: The TWSE or TAIFEX may deny the registration if any of the following circumstances applies to the onshore overseas Chinese or foreign national applying for registration:
        1. The contents or items of the registration documents are found to be fraudulent or untrue;
        2. An incomplete set of registration documents is submitted or they have not been fully filled out; or
        3. There is a serious violation of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals or the laws and regulations concerning securities or futures administration.
  2. Amendment
    3. If the contents of the registration items of the Onshore Overseas Chinese or foreign national have been changed, the securities firm or futures commission merchant should submit an application to the TWSE with the following documents.
    1. Onshore Overseas Chinese and Foreign Natural Persons: Alien Resident Certificate (or Overseas Compatriot Identity Certificate, or ROC passport with an Overseas Compatriot Identity Endorsement) and other identification with identifiable features (such as national health insurance card, passport, driver's license or student identity card etc.).
    2. Onshore and Offshore Foreign Institutional Investors: The Recognition Certificate from the Ministry of Economic Affairs, company registration certificate, the identification certificate or the Alien Resident Certificate or passport of the responsible person.
  3. Cancellation
    1. Application for Cancellation by Onshore Overseas Chinese or Foreign Nationals:
      When an onshore overseas Chinese or foreign national applies for cancellation, the securities firm or futures commission merchant shall submit by letter an application to the TWSE, along with the documents specified in Point 2.B.
    2. Cancellation by the TWSE or TAIFEX
      1. If the onshore overseas Chinese or foreign national has violated Article 11, paragraph 2 of the Regulations, or Point 8, paragraph 2 of the Directions, or is found by the competent authority governing relevant business to have violated relevant laws and regulations, the TWSE or TAIFEX may cancel the registration, and notify the securities firm or futures commission merchant where the account has been opened to proceed in accordance with the following provisions:
        1. The securities firm may not accept buy orders, provided that this restriction does not apply where the buy orders are for the purpose of returning borrowed securities in securities borrowing and lending transactions. The securities broker will cancel the account after the account balance has been settled.
        2. The futures commission merchant shall immediately stop accepting trading orders, provided that this restriction does not apply to orders for disposing of existing transactions. The futures commission merchant shall immediately cancel the account after the claims and obligations of the account have been fully settled.
      2. When 6 full months have passed after the account of an onshore overseas Chinese or foreign national has been cancelled by the TWSE or TAIFEX, and the cause for the cancellation has been extinguished or improved, the securities firm or the futures commission merchant may submit by letter an application to the TWSE, along with the documents specified in Point 2.B and relevant data, to apply for restoration of registration, provided that if the circumstances are severe, the required time period before restoration after the cancellation may be extended to 2 years, or the cancellation may be made permanent. If the reason for the cancellation involves violation of foreign exchange related laws and regulations, the matter shall be referred to the competent authority, which shall consult the opinion of the competent authority governing foreign exchange business.
3     Application for registration of Mainland Area investors
  1. New addition
    1. Basis:
      Article 7 of the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland Area Investors (the "Mainland Area Investor Regulations"), Article 77-7, 77-8 of the Operating Rules of the Taiwan Stock Exchange Corporation, and Article 44-4 of the Operating Rules of the Taiwan Futures Exchange Corporation.
    2. The meaning of "Mainland Area investors" in these Directions is restricted to the persons in the subparagraphs below:
      1. Qualified institutional investors of the Mainland Area ("Mainland institutional investors").
      2. Employees of TWSE or GTSM listed companies to whom securities have been duly issued in accordance with law and regulation and who have household registrations in the Mainland Area ("Mainland Area employees").
      3. Shareholders of juristic persons organized and registered under the laws of foreign nations whose shares, or certificates evidencing shares, are listed or traded on the TWSE or the GreTai Securities Market (GTSM), where such shareholders are duly organized and registered in or have household registrations in the Mainland Area ("Mainland Area shareholders").
    3. Application documents:
      1. Registration application form: The agent of the Mainland Area investor shall fill out an "Application Form for Registration of Mainland Area Investors Investing in ROC Securities or Trading of ROC Futures," Form 3-1.

        Form 3-1: Application Form for Registration of Mainland Area Investors Investing in ROC Securities or Trading ROC Futures
      2. Documents to be attached: Mainland Area investors applying for registration shall submit a complete set of the following documents:
        1. The agent's power of attorney or the representative's letter of appointment.
        2. Identification documents.
          1. Mainland Area institutional investors: A certificate or letter issued by the competent Mainland Area authority approving the institutional investor's establishment and its conformance with eligibility criteria.
          2. Segregated collective investment account for Mainland Area nationality employees of overseas subsidiaries or branch companies of TWSE listed or GTSM listed companies: Documentation of incorporation issued by the local government where the foreign subsidiary or branch company of the TWSE or GTSM listed company is located.
          3. Segregated collective investment account for Mainland Area nationality employees of TWSE (or GTSM) primary listed companies: Documentation of incorporation issued by the local government where the TWSE (or GTSM) primary listed company is located.
          4. Mainland Area shareholders:
            1. Natural persons: A passport, national ID, or other photo identification papers sufficient to establish their identity and Mainland Area nationality.
            2. Juristic persons or other lawful entities: Documents issued by the Mainland Area government approving establishment.
        3. Other documentation.
          1. Mainland Area institutional investors:
            1. Documentation issued by the competent Mainland Area securities, banking or insurance authority approving the qualifications of the institutional investor.
            2. Documentation issued by the competent Mainland Area authority over foreign exchange business showing the approved limit on foreign investment.
          2. Segregated collective investment account for employees of Mainland Area nationality at overseas subsidiaries or branch companies of TWSE or GTSM listed companies:
            1. An original copy of the declaration by the overseas subsidiary or branch company of the TWSE or GTSM listed company stating that it has obtained authorization from the employees of Mainland Area nationality.
            2. Photocopies of documents showing either approval by the competent authority or filing for effective registration for the issuance by the TWSE or GTSM listed company of new shares or employee share subscription warrants, or the company's repurchase of employee-held shares.
            3. A photocopy of meeting minutes from the relevant board of directors meeting of the TWSE or GTSM listed company showing passage of the given repurchase of company shares for transfer to employees pursuant to Article 28-2, paragraph 1, subparagraph 1 of the Securities and Exchange Act, the issuance of share subscription certificates to employees pursuant to Article 28-3 of the same Act, or the issuance of new shares pursuant to Articles 235 and 267 of the Company Act.
          3. Segregated collective investment account for employees of Mainland Area nationality at TWSE (or GTSM) primary listed companies:
            1. An original copy of the declaration by the TWSE (or GTSM) primary listed foreign issuer stating that it has obtained authorization from the employees of Mainland Area nationality.
            2. Photocopies of documents showing filing with the competent authority and effective registration for the issuance by the TWSE (or GTSM) primary listed foreign issuer of new shares or employee share subscription warrants.
            3. A photocopy of the approval letter issued by the TWSE or the GTSM approving the TWSE or GTSM primary listing.
          4. Mainland Area shareholders:
            1. Documents issued by the shareholder services agent of the foreign issuer showing that shares (or certificates evidencing shares) issued by that foreign issuer were already held by the Mainland Area shareholders prior to the TWSE or GTSM listing of the issuer. Documents showing that the employees of Mainland Area nationality subscribed to or were allotted with shares pursuant to the laws of the country of registration, and photocopies of documents showing filing with the competent authority and effective registration for the issuance of new shares or employee stock warrants.
            2. A photocopy of the approval letter issued by the TWSE or the GTSM approving the TWSE or GTSM primary listing.
        4. If the Mainland Area institutional investor, on the declarations section of the registration form, checks "hedging," or "investment and hedging," the stock exchange or the futures exchange may, as necessary, request that the investor or the trader provide the fund prospectus or the fund establishment agreement and related documents setting out its investment or trading strategies.
    4. Procedural flow:
      1. Transmission of registration application form: The agent of the Mainland Area investor applying for registration first transmits the completed registration form online over the TWSE system, and when the information is reviewed through the system and found free of error, the TWSE will immediately issue a "Certificate of Completed Registration by Mainland Area Investor," Form 3-2.

        Form 3-2: Certificate of Completed Registration for Mainland Area Investors
      2. Related materials: After the agent of the Mainland Area investor applying for registration has transmitted the registration application form through the TWSE system, the registration form (either in Chinese or in English, provided that the content must be identical to the form transmitted to the TWSE), personally signed by the Mainland Area investor, shall be delivered with the Chinese version of the same form for recordation by the TWSE, which will periodically undertake review of the related materials. The Mainland Area investor's agent shall retain a full set of the documents set out in Point 2.C "Application Documents."
      3. Denial of registration: The TWSE or TAIFEX may deny a Mainland Area investor's application for registration under any of the following circumstances:
        1. The registration documents or particulars they list are found to be fraudulent or untrue.
        2. An incomplete set of registration documents is submitted or they have not been fully filled out, and the applicant has failed to supplement them within 5 days following notification by the TWSE.
        3. The investor is found to have committed a serious violation of the Mainland Area Investor Regulations or the regulations governing securities or futures.
        4. The investor's registration has been cancelled by the TWSE or the TAIFEX in accordance with securities or futures laws and regulations.
  2. Amendments
    When there has been a change in the content of registration particulars by a Mainland Area investor who has already completed registration, the investor's agent shall immediately apply to the TWSE to amend the registration.
    1. Application:
      1. Name change:
        The Mainland Area investor or the investor's agent transmits the "Application for Registration of Name Change by Mainland Area Investor," Form 3-3-1, online through the TWSE system. After the form is reviewed through the system and found free of error, the "Certificate of Completed Amendment of Registration by Mainland Area Investor," Form 3-4, can be printed out and immediately used to carry out account opening amendment at a securities firm or futures commission merchant. Related documents and information need not be delivered to the TWSE for recordation, but the TWSE or TAIFEX may as necessary request the investor or trader to provide relevant information.

        Form 3-3-1: Application for Registration of Name Change by Mainland Area Investor

        Form 3-4: Certificate of Completed Amendment of Registration by Mainland Area Investor
      2. Change of agent or representative:
        After the Mainland Area investor or the investor's agent transmits the "Application for Registration of Change of Agent (or Representative) by Mainland Area Investor," Form 3-3-2, online through the TWSE system and prints out the "Certificate of Completed Amendment of Registration by Mainland Area Investor," Form 3-4, it may be used immediately for account opening amendment at a securities firm or futures commission merchant. Related documents and information need not be delivered to the TWSE for recordation, but the TWSE or TAIFEX may as necessary request the investor or trader to provide relevant information.
      3. Amendment of other items:
        With the exception of the above items, when information under item 5 of the Registration Form, other basic information, is amended, the Mainland Area investor's agent may directly update the information through TWSE system maintenance. Relevant documents and information need not be provided to the TWSE for recordation.

        Form 3-3-2: Application for Registration of Change of Agent (or Representative) by Mainland Area Investor
  3. Cancellation
    1. Application for Cancellation by Mainland Area Investors:
      1. When the agent of the Mainland Area investor applying for cancellation is a custodian institution, it shall transmit the "Application Form for Cancellation of Registration by Mainland Area Investor," Form 3-5, online through the TWSE system and shall fax to the TWSE a photocopy of its letter of authorization as taxpayer agent or the letter of consent issued by the Taipei National Tax Administration. After TWSE confirmation, it may print a "Certificate of Completed Cancellation," Form 3-6, and then proceed to the securities firm or futures commission merchant to carry out account cancellation.
      2. When the agent of the Mainland Area investor applying for cancellation is a futures commission merchant, it shall transmit the "Application Form for Cancellation of Registration by Mainland Area Investor," Form 3-5, online through the TWSE system and fax Form 3-5 to the TWSE for confirmation. After TWSE confirmation, it may print a "Certificate of Completed Cancellation," Form 3-6, and then proceed to the securities firm or futures commission merchant to carry out account cancellation.
    2. Cancellation by the TWSE or TAIFEX
      1. If the registration by a Mainland Area investor has violated Article 8, paragraph 2 of the Mainland Area Investor Regulations, or is found by the competent authority governing relevant business to have violated relevant laws or regulations, the TWSE or TAIFEX may cancel the registration, and notify the securities firm or futures commission merchant where the account has been opened to proceed in accordance with the following provisions:
        1. The securities firm may not accept buy orders, and will cancel the account after the account balance has been settled.
        2. The futures commission merchant shall immediately stop accepting trading orders, provided that this restriction does not apply to orders for handling original transactions. The futures commission merchant shall immediately cancel the account after the claims and obligations of the account have been fully settled.
      2. When 6 full months have passed after the account of a Mainland Area investor has been cancelled by the TWSE or TAIFEX, and the cause for the cancellation has been extinguished or improved, the agent may submit by letter relevant data to the TWSE, to apply for restoration of registration, provided that where the circumstances are severe, the required time period before restoration after the cancellation may be extended to 2 years, or the cancellation may be made permanent. If the reason for the cancellation involves violation of foreign exchange related laws and regulations, the matter shall be referred to the competent authority, which shall consult the opinion of the competent authority governing foreign exchange business.

    Form 3-5: Application Form for Cancellation of Registration by Mainland Area Investor

    Form 3-6: Certificate of Completed Cancellation
4     Principles for assignment of investment code numbers
  1. Principles for assignment of foreign investor code numbers
    2. Principles for Assignment of "F" Codes
    Principles for Assignment of "G-H" Codes
  2. Principles for assignment of Mainland Area investor code numbers
    3. Principles for Assignment of C Codes
5     Supplemental registration for existing QFII sub-accounts
  1. Application for supplemental registration
    1. The agent (or representative) for the original QFII sub-account should enter the F code in the TWSE system.
    2. The system will automatically produce a Form for Registration of an Existing QFII Sub-Account as a Master Account, Form 5-1, in which the F code of the existing sub-account and the Chinese and English names of the existing sub-account will be automatically produced, and the remaining information is to be filled in by the agent (or representative) of the offshore overseas Chinese or foreign national.

      Exhibit 5-1: Offshore Foreign Institutional Investor Registration Form (for Original QFII Sub-Account Registration as FINI)
    3. Flow of Processing: the sub-account agent (or representative) should transmit the completely filled out supplemental registration application materials online via the Exchange's system. Once the materials are checked online through the system and no error is found, the agent can print out the completed Certificate of Completed Supplemental Registration, as shown in Form 5-2, online through the TWSE system.

      Form 5-2: Certificate of Completion of Supplemental Registration
6      Registration of two or more trading accounts opened at the same place of business of the same securities firm
  1. A Mainland Area institutional investor satisfying any of the following conditions may open two or more trading accounts at the same place of business of the same securities broker.
    1. The investment strategy calls for operation by an external manager.
    2. Internal investment operations use different transaction platforms, e.g.:
      1. Different branches must be differentiated by different accounts.
      2. Need for accounts to be operated and managed by different internal trading units or traders.
      3. Need to differentiate proprietary trading positions and client positions by different accounts.
      4. Different policies must be differentiated by different accounts.
    3. It is necessary to assign different external account administrators (e.g. global brokers or global custodian banks) to operate and manage accounts.
    4. Other conditions approved by the Competent Authority.
  2. The agent (or representative) of the Mainland Area institutional investor should transmit the completely filled out Registration Form for Opening Two or More Trading Accounts in the Same Place of Business of the Same Securities Brokerage Firm (Form 6-1) online via the TWSE system, and fax to the TWSE as confirmation the instruction letter for opening two or more trading accounts in the same place of business of the same securities brokerage firm, personally signed by the Mainland Area institutional investor, along with the Registration Application Form for Opening Two or More Trading Accounts in the Same Place of Business of the Same Securities Brokerage Firm. Only then may the agent (or representative) of the Mainland Area institutional investor carry out the account opening with the securities broker, by presenting a copy of the printed-out Certificate of Completed Registration for Opening Two or More Trading Accounts in the Same Place of Business of the Same Securities Brokerage Firm (Form 6-2) and a letter of application for account opening personally signed by the Mainland Area institutional investor.

    Form 6-1: Registration Form for Opening Two or More Trading Accounts in the Same Place of Business of the Same Securities Brokerage Firm

    Form 6-2: Certificate of Completed Registration for Opening Two or More Trading Accounts in the Same Place of Business of the Same Securities Brokerage Firm
  3. The letter of application for account opening referred to in the preceding paragraph should specify the reasons for the application for account opening, and the following evidentiary documents should be provided therewith:
    1. Where the investment strategy calls for operation by an external manager:
      1. Photocopy of the investment management agreement; or
      2. Letter issued by the external manager confirming that it has been engaged by the Mainland Area institutional investor for such management operations.
    2. Where internal investment operations use different transaction platforms:
      A description of the internal investment operations of the Mainland Area institutional investor and a statement that there is no misrepresentation.
    3. Where different external account administrators are assigned:
      1. Photocopy of the management agreement; or
      2. Letter issued by the external account administrator confirming that it has been engaged by the Mainland Area institutional investor for such purpose.
  4. When opening the account, the securities broker shall suffix the name of the Mainland Area institutional investor with the registered Chinese name, to clearly distinguish the authority and responsibility for each of the different accounts of the same investor, so as to facilitate management.
  5. Name change
    The agent (or representative) of the Mainland Area institutional investor should transmit the completely filled out Application Form for Registration of Account Name Change Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm (Form 6-3) online via the TWSE system, and fax to the TWSE as confirmation the instruction letter for trading account name change where two or more trading accounts have been opened in the same place of business of the same securities brokerage firm, personally signed by the Mainland Area institutional investor, along with the Registration Application Form for Account Name Change Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm. Only then may the agent (or representative) of the Mainland Area institutional investor carry out the name change with the securities broker, by presenting a copy of the printed-out Certificate of Completed Registration for Account Name Change Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm (Form 6-4) and a letter of application for name change personally signed by the Mainland Area institutional investor.
  6. Cancellation
    The agent (or representative) of the Mainland Area institutional investor should transmit the completely filled out Application Form for Registration of Account Cancellation Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm (Form 6-5) online via the TWSE system, and fax to the TWSE as confirmation the instruction letter for trading account cancellation where two or more trading accounts have been opened in the same place of business of the same securities brokerage firm, personally signed by the Mainland Area institutional investor, along with the Account Cancellation Registration Application Form Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm. Only then may the agent (or representative) of the Mainland Area institutional investor carry out the cancellation with the securities broker, by presenting a copy of the printed-out Certificate of Completed Registration for Account Cancellation Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm (Form 6-6) and a letter of application for cancellation personally signed by the Mainland Area institutional investor.

    Form 6-3: Application Form for Registration of Account Name Change Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm

    Form 6-4: Certificate of Completed Registration for Account Name Change Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm

    Form 6-5: Application Form for Registration of Account Cancellation Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm

    Form 6-6: Certificate of Completed Registration for Account Cancellation Where Two or More Trading Accounts Have Been Opened in the Same Place of Business of the Same Securities Brokerage Firm
7     These Directions are jointly drafted by TWSE and TAIFEX and come into effect when promulgated after approval by the competent authority. Subsequent amendments hereto shall come into effect in the same manner.