| Title： |
Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities(2005.08.15) |
| Date： |
|
|
Article 2
|
Securities firms accepting orders to trade foreign securities and exercising rights relating to the securities purchased on orders from principals shall do so in accordance with these Regulations, the laws and regulations of each local securities market, the bylaws of the securities exchange or self-regulating organization, and the contract with the principal.
Securities firms accepting orders to trade offshore funds shall do so in accordance with the Regulations Governing Offshore Funds prescribed under authority of Article 16, paragraph 3, of the Securities Investment Trust and Consulting Act; for matters on which those Regulations are silent, relevant provisions of these Regulations shall apply.
|
|
Article 3
|
Securities firms conducting the business of accepting orders to trade foreign securities shall possess the following qualifications, and shall be further approved by the Financial Supervisory Commission, Executive Yuan (hereinafter "this Commission") and the Central Bank of China.
1. The company itself, its subsidiaries, branch offices, or other securities institutions which it has invested has the membership qualifications of a foreign stock exchange designated by this Commission.
2. Possess the transmission facilities that are capable of quickly obtaining investment information and information necessary for brokerage trading in the foreign stock exchange referred to in the precedingSubparagraph.
Those without the qualifications may directly or indirectly authorize securities firms referred to in the preceding Paragraph or a securities firm with the membership or trading qualifications of a foreign stock exchange designated by this Commission to engage in the trade of foreign securities; its handling procedures shall be drafted by the securities dealers association and sent to this Commission for its approval.
The invested relationship referred to in Subparagraph 1 of Paragraph 1 shall mean any person holding over 20 percent of the outstanding shares of any party.
|
|
Article 5
|
The types of foreign securities for which a securities firm is allowed to accept trading orders shall be limited to the following:
1. The stocks, warrants, beneficiary certificates, depositary certificates and other securities traded on a foreign stock exchange referred to in Article 3, Paragraph 1, Subparagraph 1.
2. Bonds with a rating of satisfactory or better from a credit rating agency recognized by this Commission. However, this requirement does not apply to orders for sale of foreign bonds.
3. Offshore funds for which approval or effective registration has been obtained from this Commission for public offering and sale in Taiwan.
4. Other securities approved by this Commission.
The bonds referred to in Subparagraph 2 of the preceding paragraph do not include the following securities:
1. Corporate bonds issued overseas by Taiwan enterprises.
2. Structured notes or structured bonds linked to any of the following securities:
(1) Domestic securities.
(2) Securities issued overseas by domestic listed or OTC companies.
(3) Beneficiary certificates issued overseas by domestic securities investment trust enterprises.
Where an institutional investor has received approval from the relevant competent authority to invest in overseas securities, a securities firm may accept orders from it for trades in types of securities which, except for those securities listed in the preceding paragraph, shall not be subject to the restrictions of paragraph 1.
|
|
Article 27
|
For securities firms accepting orders to trade foreign securities, in addition to submitting on a daily basis to the securities dealers association a daily business report of its brokerage trading of foreign securities, it shall also submit to this Commission, the competent authority in charge of foreign exchange, and the securities dealers association a monthly business report on its brokerage trading of foreign securities and a status report on the amounts payable remitted into the principal's designated account before the fifth day of the subsequent month.
Securities firms accepting orders to trade offshore funds, in addition to complying with Article 13 of the Regulations Governing Offshore Funds, shall also comply with the provisions of the preceding paragraph.
|