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Article 3
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An offshore fund manager or an institution appointed by the offshore fund manager ("offshore fund institution") shall appoint a single master agent to represent it in the offering and sale of its funds in Taiwan.
A master agent may represent one or more offshore fund institutions in offering and selling funds thereof in Taiwan.
A sub-distributor may handle the offering and sale of one or more offshore funds in Taiwan.
Unless otherwise provided in these Regulations, the provisions hereof concerning master agents or sub-distributors shall apply to investment in offshore funds through trust enterprises under non-discretionary trust of money agreements or through securities brokers under foreign securities brokerage agreements.
Except in cases of investment in offshore funds through trust enterprises under non-discretionary trust of money agreements or through securities brokers under foreign securities brokerage agreements, a sub-distributor handling the purchase, redemption, or transfer of an offshore fund by investors shall forward the transaction instructions to the offshore fund institution via the master agent.
A participating dealer processing or engaging in the purchase or redemption of offshore exchange traded funds (ETFs) shall do so by the method prescribed by the offshore fund institution, and is not required to go through the master agent when transmitting transaction instructions to the offshore fund institution.
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Article 9
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A master agent shall meet the following qualifications:
1. Have paid-in capital, appropriated operating capital, or exclusively allocated operating capital of not less than NT$70,000,000;
2. Have net worth per share of not less than par value according to the most recent CPA audited and certified financial report, provided that this requirement shall not apply if it has obtained its business license for less than one full fiscal year;
3. Have the necessary information transmission facilities for real-time access to investment and relevant transaction information of the offshore fund institution;
4. Have not been subject three times or more within the past half year to any disposition imposing a reprimand or requirement of improvements within a specified time limit under Article 103, subparagraph 1, of the Securities Investment Trust and Consulting Act, Article 66, subparagraph 1, of the Securities and Exchange Act, Article 100, paragraph 1, subparagraph 1, of the Futures Trading Act, Article 44 of the Trust Enterprise Act, or Article 61-1, paragraph 1, of the Banking Act.
5. Have not within the past two years been subject to a disposition as set out in Article 103, subparagraphs 2 to 5, of the Securities Investment Trust and Consulting Act, Article 66, subparagraphs 2 to 4, of the Securities and Exchange Act, Article 100, paragraph 1, subparagraphs 2 to 4, of the Futures Trading Act, Article 44, subparagraphs 1 to 3, of the Trust Enterprise Act, or Article 61-1, paragraph 1, subparagraphs 1 to 4 of the Banking Act. However, this restriction does not extend to a disposition by the FSC ordering dismissal of personnel;
6. Have business personnel and internal auditors meeting the qualification and staffing requirements as set out in Article 16 hereof;
7. Have such other qualifications as may be prescribed by the FSC.
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Article 10
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A master agent other than one handling the offering and sale of offshore ETFs in Taiwan shall post an operating bond as specified below with a financial institution permitted to provide custodian services and having a certain credit rating or higher from a credit rating agency recognized by the FSC:
1. Where the master agent represents funds managed by one offshore fund manager, NT$30,000,000;
2. Where the master agent represents funds managed by two offshore fund managers, NT$50,000,000;
3. Where the master agent represents funds managed by three or more offshore fund managers, NT$70,000,000.
Except for investments in offshore funds through a non-discretionary trust of money agreement or through a foreign securities brokerage agreement, where a sub-distributor purchases offshore funds in its own name on behalf of investors, the sub-distributor shall post an operating bond of NT$20,000,000 with a financial institution meeting the qualification in the preceding paragraph.
The operating bonds under the preceding two paragraphs shall be in cash, bank deposits, government bonds, or financial bonds, shall be free of any pledge or any form of encumbrance, and shall be placed with only one financial institution. Any change of the custodian institution or withdrawal of an operating bond may proceed only after it has been reported to the FSC via the SITCA and approved by the FSC.
Directions for the procedures for deposit, withdrawal, and substitution of operating bonds, and any subsequent amendments thereto, shall be prescribed by the SITCA and submitted to the FSC for approval.
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Article 11
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The master agent shall handle the following matters:
1. Production of relevant information such as the investor information summary and the Chinese translation of the prospectus, and delivery of such information to sub-distributors, participating dealers, and investors. However, the master agent is not required to deliver such information to investors if the offshore ETF is traded on the stock exchange;
2. Acting as the agent for service of process and all document correspondence of the offshore fund institution in Taiwan;
3. Communicating with the offshore fund institution, and providing investors with relevant issuance and transaction information on the funds it represents;
4. Forwarding transaction instructions for purchase, redemption, or exchange of offshore funds from the investor to the offshore fund institution, provided that this rule shall not apply to an agent of an offshore ETF;
5. Assisting in matters related to the protection of rights and interests of investors in events where the master agent is not at fault;
6. Other matters as required by law, regulations, or FSC provisions.
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Article 12
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The master agent shall publicly announce the following events within three days from the occurrence thereof:
1. Revocation of the represented offshore fund’s approval or restriction of its investment activities by the competent authority in the place where the offshore fund is registered;
2. Inability of the offshore fund institution to continue to conduct relevant business due to dissolution, suspension of business, transfer of business, merger or acquisition, cessation of business, voidance or revocation of its permit under laws or regulations of the country where it is located, or other similar material event;
3. Voidance by the FSC of the registration of an offshore fund represented by the master agent;
4. Any disposition made with respect to the offshore fund manager by the competent authority thereof;
5. Any suspension or resumption of transactions of an offshore fund represented by the master agent;
6. Any amendment or addition to the content of an offshore fund prospectus or other relevant documents delivered to investors with respect to an offshore fund represented by the master agent, where the change or addition materially affects investors’ rights or interests;
7. Any investor litigation or material dispute in connection with the offering and sale in Taiwan of an offshore fund represented by the master agent;
8. Any material change to the finances or business of the master agent;
9. Any change in sub-distributors;
10. Any change in participating dealers;
11. Any occurrence of a material event relating to the offshore ETF represented by the master agent, and such event materially affects investors’ rights or interests, or any approval to change the underlying index by the competent authority in the place where the ETF is registered;
12. Any other event materially affecting investors’ rights or interests.
The master agent shall report any matters under subparagraphs 1, 2, 4, 5, or 11 of the preceding paragraph to the FSC within 3 days from the occurrence thereof. The master agent shall submit any matters under subparagraphs 9 or 10 to the SITCA in advance for its review and approval, and the SITCA shall then prepare a monthly report to the FSC. The master agent shall, by the 5th day of the following month, summarize and report any matters under subparagraphs 6 to 8 or subparagraph 12 to the SITCA, which shall then forward the report to the FSC.
Where the master agent is unable to continue offering and distributing any offshore fund due to events referred to in subparagraphs 1 through 3 of paragraph 1, the master agent shall assist investors to carry out subsequent redemption, conversion, or other relevant matters relating to the offshore funds.
An offshore fund shall require the approval of the FSC for any of the following events, and shall publicly announce such event within three days from the occurrence thereof:
1. Transfer, merger, or liquidation of the fund;
2. Increase in the remuneration of the offshore fund manager or the custodian institution;
3. Termination of the offering and sale of the offshore fund in Taiwan;
4. Change of the offshore fund manager or the custodian institution of the offshore fund;
5. Change of the fund name;
6. Change of the basic investment policies or scope of the fund for investing in securities or trading securities related products, where inconsistent with the provisions of Article 23 hereof.
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Article 13
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On each business day, the master agent shall report the fund names, and the aggregate amounts and numbers of units of confirmed purchases, redemptions, or conversions of the offshore funds represented by it the preceding business day and such other items as are prescribed by the FSC to the FSC or an institution designated by the FSC in the format and with the content specified by the FSC through the information transmission system designated by the FSC.
A master agent shall produce a monthly report for the offshore funds represented by it in the format and with the content prescribed by the FSC and shall, within 10 days after the end of each month, submit the report to the SITCA through the transmission system designated by the FSC, for the SITCA to compile and forward to the FSC and the Central Bank of China (CBC).
A master agent shall produce an annual financial report for the offshore funds represented by it in accordance with the regulations of the place where the fund is registered, and immediately publish it together with a Chinese language summary thereof. The same applies when a semi-annual financial report is required under the regulations of the place where the fund is registered.
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Article 15
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Upon discovery that a sub-distributor, in handling the offering and sale of an offshore fund, or a participating dealer, in handling the purchase or redemption of an offshore ETF, is in violation of any law or regulation or contract, or is exceeding its authority, or is damaging the rights or interests of investors, the master agent shall immediately see that improvements are made by the sub-distributor, and immediately notify the FSC.
Where rights or interests of investors are harmed due to any intentional [act or omission], negligence, or violation of a contract or law or regulation by the master agent, a sub-distributor, a participating dealer, or any director, supervisor, manager, or employee thereof, such persons shall be liable for damages.
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Article 17
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FSC approval shall be required for any change or termination of a master agent and the change or termination shall be publicly announced and notice given to the investors within two days. However, the master agent may refrain from notifying the investors if the offshore ETFs are traded on the stock exchange.
The date of public announcement as mentioned in the preceding paragraph shall be at least 15 business days prior to the date of change or termination.
After termination of a master agent relationship, the master agent shall assist investors to carry out subsequent redemption, conversion, or other relevant matters relating to the offshore fund until another offshore fund master agent takes over the business.
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Article 18
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The master agent may mandate an approved SITE, SICE, securities broker, bank, trust enterprise, or institution approved by the FSC, to be a sub-distributor for offshore funds to handle the offering and sale of the offshore funds.
Trust enterprises or securities brokers acting as an offshore fund sub-distributor pursuant to these Regulations may enter into non-discretionary trust of money agreements or foreign securities brokerage agreements with their investors for such purpose.
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Article 19
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A sub-distributor shall meet the following requirements:
1. Have net worth per share of not less than par value according to the most recent CPA audited and certified financial report, provided that this requirement shall not apply if it has obtained its business license for less than one full fiscal year;
2. Have not within the past two years been subject, due to its operation of offshore funds or securities investment trust fund business, to any disposition under Article 103, subparagraphs 2 to 5, of the Securities Investment Trust and Consulting Act, Article 66, subparagraphs 2 to 4, of the Securities and Exchange Act, Article 100, paragraph 1, subparagraphs 2 to 4, of the Futures Trading Act, Article 44, subparagraphs 1 to 3 of the Trust Enterprise Act, or Article 61-1, paragraph 1, subparagraphs 1 to 4 of the Banking Act. However, this restriction does not extend to a disposition by the FSC ordering dismissal of personnel or where there is already concrete improvement in the circumstances regarding its violation and such improvement is recognized by the competent authority.
3. Have associated persons to handle the offering and sale who meet the qualifications for associated persons prescribed in the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust and Consulting Enterprises;
4. Have such other qualifications as may be prescribed by the FSC.
Subparagraph 1 of the preceding paragraph does not apply to trust enterprises and securities brokers engaging in the business of investing, on behalf of customers, in offshore funds under non-discretionary trust of money agreements or foreign securities brokerage agreements prior to the issuance of these Regulations.
Where an associated person was already engaging in the business of investing, on behalf of customers, in offshore funds at a trust enterprises under non-discretionary trust of money agreements or at a securities broker under foreign securities brokerage agreements prior to the issuance of these Regulations, and such associated person does not meet the qualifications prescribed in these Regulations, the person shall take corrective measures within one year from the date of issuance hereof; if the corrections have not been completed within that period, such person may not engage in business related to offshore funds.
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Article 22
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Mandating of a master agent by an offshore fund institution and mandating of a sub-distributor by the master agent shall be done in writing.
The required content of master agent agreements and sub-distributor agreements executed for mandates under the preceding paragraph described above, and any subsequent amendments thereto, shall be drafted by the SITCA and ratified by the FSC.
A sub-distributor agreement may be executed jointly among the sub-distributor, the offshore fund institution, and the master agent.
When offering and selling offshore funds under these Regulations, master agents and sub-distributors may not waive by contract any duty they bear to investors under any law or regulation.
A master agent of an offshore ETF shall sign an agreement with any participating dealer or dealers to stipulate the rights and obligations of the parties.
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Article 23
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Offshore funds other than offshore ETFs meeting the conditions listed below may be offered and sold in Taiwan subject to approval by or effective registration with the FSC:
1. The percentage of the offshore fund utilized in derivatives trading may not exceed the percentage as prescribed by the FSC;
2. The offshore fund may not invest in gold, spot commodities, and real estate;
3. The percentages of the offshore fund’s total investments that are invested in securities in the Mainland China securities market may not exceed the percentages set by the FSC;
4. The percentage of the investment in any individual offshore fund that is contributed by Taiwan investors may not exceed the limit set by the FSC;
5. The investment portfolio of the offshore fund may not make Taiwan securities markets its primary investment area; a percentage limit for such investment shall be set by the FSC.
6. The offshore fund may not be denominated in New Taiwan Dollars or Renminbi;
7. The offshore fund must have been established for one full year;
8. The offshore fund has been approved by the competent authority of its place of registration to be offered to the public;
9. Such other requirements as may be prescribed by the FSC.
With special-case approval from the FSC or where an offshore fund's place of registration is recognized and publicly announced by Taiwan, an offshore fund may be exempted from the restrictions of subparagraphs 1 and 7 of the preceding paragraph.
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Article 24
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The offshore fund manager of an offshore fund, other than an offshore ETF, approved by, or effectively registered with, the FSC for offer and sale in Taiwan shall meet the following conditions:
1. The total net asset value of all funds under the management of the fund manager (which may include its controlling and subsidiary institutions) raised by public offering and invested in securities exceeds US$2 billion or the equivalent in other foreign currencies. The calculation of the "net asset value" excludes pension funds and discretionary investment accounts.
2. The fund manager has not been sanctioned, with a record, by the competent authority of its home country during the past two years;
3. The fund manager has been established for at least two years.
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Article 25
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The custodian institution for an offshore fund, other than an offshore ETF, approved by, or effectively registered with, the FSC for offer and sale in Taiwan shall have a certain credit rating or higher from a credit rating institution approved or recognized by the FSC.
If the custodian institution mentioned in the preceding paragraph does not have any credit rating, the credit rating of the conglomerate to which the custodian institution belongs may be used instead.
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Article 26
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An offshore ETF that meets the following qualifications may, after obtaining approval from the FSC, file an application with the Taiwan Stock Exchange to be listed and traded on the exchange:
1. The place of registration of the fund and the place where the offshore fund manager is located have been recognized and publicly announced by Taiwan. However, this restriction shall not apply to the place of registration of the fund if the fund is offered or issued under bilateral or multilateral cooperation between financial competent authorities;
2. It meets the requirements set out in Article 23, paragraph 1, subparagraphs 2, 5, 6, 8, and 9.
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Article 27
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Except for offshore funds subject to Article 27-1 or Article 28 hereof, before an offshore fund may be offered and sold, the master agent of the offshore fund institution shall file a completed application accompanied by the following documents with the SITCA, which shall review it and forward it to the FSC for approval:
1. Documents evidencing compliance with the qualifications for a master agent of an offshore fund set out in Article 9 hereof;
2. The master agent agreement between the offshore fund institution and the master agent;
3. The personnel training program entered into between the offshore fund institution and the master agent;
4. Document evidencing that the master agent has posted the operating bond in accordance with regulations;
5. A written statement representing that each sub-distributor meets the required qualifications and the distribution agreement therewith;
6. The document evidencing approval for public offering from the offshore fund’s place of registration;
7. Where application is made to offer and sell more than one offshore fund, an itemized list thereof;
8. Relevant information including the most recent annual financial report of the offshore fund(s) and a Chinese language summary thereof, the investment portfolio, investor information summary, and Chinese translation of the prospectus;
9. Documents evidencing compliance with Article 24 hereof;
10. A written statement issued by the offshore fund institution representing that it will, at the request of the FSC, provide account books and records related to the purchase, redemption, or conversion of the offshore fund, and information related to the rights and interests of investors for the FSC to review;
11. A written statement issued by the offshore fund manager representing its compliance with Article 23, paragraph 1, subparagraphs 1 to 5 hereof;
12. The most recent financial report of the offshore fund manager;
13. Document evidencing the credit rating of the custodian institution of the offshore fund(s);
14. An opinion issued by a lawyer stating that the level of protection for the rights and interests of investors in the place of registration of the offshore fund(s) is no less than that in Taiwan;
15. An opinion issued by a lawyer stating that the level of protection for the rights and interests of investors in the place of registration of the offshore fund manager is no less than that in Taiwan;
16. Document evidencing membership in the SITCA;
17. Other documents as may be required by the FSC.
Where the place of registration of the fund and the home country of the offshore fund manager are recognized and publicly announced by Taiwan, the documents listed in paragraph 1, subparagraphs 14 and 15, are not required.
The Regulations Governing Public Offering of Securities Investment trust funds by Securities Investment Trust Enterprises shall apply mutatis mutandis to the application procedures for offshore funds exempted under Article 23, paragraph 2, hereof from the requirement of establishment for one full year
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Article 27-1
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The master agent mandated by the offshore fund institution shall file a completed application accompanied by the following documents with the SITCA, which shall review it and forward it to the FSC for approval, and only then may the offshore ETF be offered and sold, and an application filed for listing and trading on the stock exchange:
1. Documents as required under subparagraphs 1 to 3, 5 to 8, 10, 12, and 16 of paragraph 1 of the preceding article;
2. A written declaration by the offshore fund institution of its compliance with subparagraphs 2 and 5 of paragraph 1 of Article 23;
3. Document evidencing that it is already listed and traded on a securities exchange;
4. List of participating dealers, participation agreements, and the agreements signed between the master agent and participating dealers.
5. Other documents as may be required by the FSC.
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Article 28
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For offshore funds that were the subject of investment consulting by a SICE prior to the issuance of these Regulations, the master agent appointed by the offshore fund institution shall complete a written report and file it together with relevant documents with the FSC for effective registration before such funds may be offered and sold.
The required documents and procedures for reports filed by the master agent under the preceding paragraph shall be as publicly announced by the FSC.
In handling applications or reports filed in accordance with the preceding two articles or paragraph 1 hereof, the FSC may, depending on securities market management needs, set ceilings on the aggregate amounts of the offering and sale of an offshore fund in Taiwan.
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Article 29
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After a master agent’s initial application (or filing) for the offering and sale of offshore funds is approved (or effectively registered) by the FSC, if outward and inward remittance of funds will be involved, the master agent shall file an application accompanied by relevant documentation, such as a list of sub-distributors and participating dealers, with the CBC for permission to handle relevant foreign exchange business, before commencing offering and sale. However, if the offshore ETFs are listed in New Taiwan Dollars, the application shall be filed on a case-by-case basis.
In the event of any change in any sub-distributor(s) or participating dealer(s) of the offshore funds handled by a master agent, resulting in an inconsistency with the list of sub-distributors or participating dealers referred to in the preceding paragraph, the master agent shall report the change to the CBC for recordation within three days from the occurrence of the change; the same shall apply to any change in items reported for recordation.
Where the receipt/payment of funds in connection with an offshore fund involves outward or inward remittance of funds by the centralized securities depository enterprise, the depository enterprise shall file an application with the CBC for permission to handle relevant foreign exchange business.
If the receipt/payment of funds by a participating dealer in connection with an offshore ETF involves any outward or inward remittance of funds, the participating dealer shall file an application with the CBC for permission to handle relevant foreign exchange business.
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Article 31
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After a master agent has filed and obtained approval or effective registration from the FSC for the offering and sale of offshore funds, the FSC may suspend the offering and sale of such funds, or void or revoke its approval or effective registration in any of the following circumstances:
1. A falsehood or misrepresentation in any document under Article 27, paragraph 1, Article 27-1, or Article 28, paragraph 1, hereof;
2. A violation of the statement set out in Article 27, paragraph 1, subparagraph 10, hereof, where serious in nature;
3. A violation of any subparagraph of Article 40 hereof, where serious in nature;
4. Any other violation of these Regulations, or of any restriction or prohibition imposed by the FSC at the time of approval of the application or effective registration, where serious in nature;
5. A violation of any other mandatory or prohibitive provision, where it would affect the rights and interests of investors, and is serious in nature.
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Article 33
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The master agent or a sub-distributor shall handle the receipt/payments of funds for the purchase of offshore funds by investors by one of the following methods:
1. Investors pay and receive funds directly to and from an offshore account designated by the offshore fund institution;
2. The offshore fund institution authorizes the master agent to open a fund account with a Taiwan financial institution in the name of the offshore fund institution for such receipt/payment;
3. Receipt/payment of funds is handled through a bank account designated by the centralized securities depository enterprise designated by the FSC, and the centralized securities depository enterprise remits payments to an offshore account designated by the offshore fund institution or a segregated account of the offshore fund institution opened with a Taiwan financial institution.
Where receipt/payment for fund purchases is handled in accordance with subparagraph 3 of the preceding paragraph, any monies related to the redemption, conversion, distribution of interest/proceeds, and liquidation shall be remitted by the offshore fund institution to the bank accounts designated by investors through the bank account designated by the centralized securities depository enterprise. The offshore fund institution may not accept instructions from the master agent or any sub-distributor to change the bank account designation instructions of the centralized securities depository enterprise.
Where the master agent or the sub-distributor is mandated to invest in an offshore fund under a non-discretionary trust of money agreement or a foreign securities brokerage agreement, it may be exempted from the requirements of paragraph 1.
The receipt/payments of funds for the purchase and redemption of offshore ETFs shall be handled in accordance with the provisions set out by the offshore fund institution, the prospectus, and the CBC.
Procedures related to the opening of segregated accounts, receipt/payment of funds, and matters such as fund currency denomination [and conversion] and inward and outward remittance of funds shall be handled in accordance with the regulations of the FSC and the CBC.
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Article 37
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When any update or amendment is made to a prospectus for an offshore fund, the master agent shall publicly announce the Chinese translation thereof within 3 days after the update or amendment.
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Article 39
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When offering and distributing offshore funds, the master agent, the sub-distributor, or the participating dealer shall deliver the investment information summary and the Chinese translation of the prospectus to investors. However, this rule shall not apply to offshore ETFs that are traded on the stock exchange.
The investment information summary shall contain the following particulars:
1. A statement introducing the master agent, the issuer of the offshore fund, the custodian institution, the sub-distributor(s), and any other relevant entities; if any related party relationships exist among them, an explanation of the relationships shall be given;
2. A brief description of the offshore funds being offered and sold;
3. The methods for purchase, redemption, and conversion of offshore funds:
(1) Minimum purchase price;
(2) Method for payment of the price;
(3) Cut-off time for placing orders on each business day and the method for determining and handling late order documents;
(4) Procedures for purchase, redemption, and conversion;
4. Method for refund when the offering and sale of offshore funds fails to be executed;
5. Rights, obligations, and duties of the master agent and the offshore fund institution;
6. Information and services the master agent is required to provide;
7. Method for handling disputes between the investor and the offshore fund institution, master agent, and/or sub-distributor;
8. Methods for assisting in protecting the rights and interests of investors;
9. Chart showing any fees to be borne by investors and the amount thereof or calculation basis therefor;
10. Explanation of investment risks;
11. Website on which investors may obtain relevant information;
12. Types of certificates to be delivered representing the rights and interests of investors;
13. In the case of the offering and sale of offshore ETFs, the following particulars shall also be specified:
(1) A brief description of the underlying index.
(2) A statement introducing the participating dealers.
(3) Methods and procedures of trading on the securities exchange or exchanges.
(4) Methods and procedures for purchase and redemption through participating dealers.
(5) Methods for exercise of rights by investors.
14. Other items as may be prescribed by the FSC.
The investor information summary referred to in the preceding paragraph shall be updated within one month after the end of each quarter; the format thereof, and subsequent amendments thereto, shall be drafted by the SITCA and ratified by the FSC.
The master agent shall publicly announce any updates or amendments to the investor information summary within 3 days after the update or amendment.
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Article 52
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An offshore fund institution may conduct private placements of offshore funds to the following counterparties in Taiwan:
1. Banks, bills finance enterprises, trust enterprises, insurance companies, securities enterprises, financial holding companies, and other juristic persons or institutions approved by the FSC;
2. Natural persons, juristic persons, or funds meeting the conditions set by the FSC.
The total number of counterparties under subparagraph 2 of the preceding paragraph may not exceed 35 persons.
On reasonable request by a counterparty under subparagraph 2 of paragraph 1, prior to consummation of a private placement, the offshore fund institution shall be obligated to provide financial, business, or other information relevant to the current private placement of a fund.
In conducting private placements to specified counterparties, the offshore fund institution may not make any general advertisement or public inducement.
If paragraph 1or 2, or the preceding paragraph is violated, the placement shall be deemed a public offering to non-specified persons.
In order to privately place offshore funds to specified persons in Taiwan, the offshore fund institution may mandate a bank, trust enterprise, securities broker, SITE, or SICE to handle such business, and shall also mandate an agent for litigious matters and an agent for tax matters.
In conducting a private placement to specified persons in Taiwan, if outward and inward remittance of investors' funds will be involved, the mandated institution under the preceding paragraph shall submit relevant documentation to the CBC to apply for permission for relevant foreign exchange business.
Where an offshore fund institution itself conducts a private placement to specified persons in Taiwan, if outward or inward remittance of funds will be involved, the remittance shall be handled by the counterparty in accordance with the Regulations Governing the Reporting of Foreign Exchange Receipts and Disbursements or Transactions.
All receipts/payments of settlement monies and fees by the counterparty in respect of a private placement of offshore funds by an offshore fund institution shall be made in foreign currency.
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