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Amendments

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: 2019.12.18 
Categories: Securities Exchange Market > Trading > Securities Transaction

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(2017.09.19)
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.
  4. 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.
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