• Font Size：
  • S
  • M
  • L

Amendments

Title：

Regulations Governing Offshore Funds  CH

Amended Date： 2023.12.14 
Article Content Chapter Content Search Article No. Search Amended Article Legislative History Chinese

Title： Regulations Governing Offshore Funds(2015.10.13)
Date：
Article 12     The master agent shall publicly announce the following events within 3 days from their occurrence:
  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 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;
  10. Any miscalculation of the fund's net asset value that reaches or exceeds the specified tolerable range set by the competent authority in the place where the offshore fund is registered;
  11. Any other event materially affecting investors’ rights or interests.
    The master agent shall report any matter under subparagraph 1, 2, 4, 5, 9, or 10 of the preceding paragraph to the FSC within 3 days from its occurrence. The master agent shall, by the 5th day of the following month, summarize and report any matters under subparagraphs 6 to 8 or subparagraph 11 to the SITCA, which shall then forward the report to the FSC.
    The master agent shall submit any of the following matters to the SITCA in advance for review and approval, and publicly announce the matter within 3 days after the approval:
  1. Any change in sub-distributors.
  2. Any change in participating dealers.
  3. In the case of an offshore fund represented by the master agent, any addition, suspension, or cancellation of the classes that are offered and sold in Taiwan.
     The SITCA shall report, on a monthly basis, any matters under subparagraphs 1 and 2 of the preceding paragraph to the FSC and the Central Bank of China (CBC), and any matters under subparagraph 3 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, switch, 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 3 days from its occurrence:
  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;
  7. Change of the fund type as a result of a change of its investment portfolio or strategy;
  8. Significant adjustment in the organization or change of name of the fund manager or the custodian institution.
  9. Any other matter required by the FSC for its approval.
Article 13     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 within 10 business days after the end of each month, shall 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 CBC. However, data involving investment ratios may be supplemented by the end of the following month.
    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.
Article 24     When a master agent submits an application (or filing) for the offering and sale of an offshore fund, the offshore fund manager of the offshore fund, other than an offshore ETF, 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 2 years;
  3. The fund manager has been established for at least 2 years.
  4. The fund manager or a member of its own group has made concrete contributions, in compliance with FSC regulations, that further asset-management business in Taiwan, and has been recognized by the FSC. The fund manager, however, may be exempted from this requirement if the place of registration of the fund and the home country of the offshore fund manager have been recognized and publicly announced by Taiwan.
     The term "member of its own group," as used in subparagraph 4 of the preceding paragraph, means a holding company to which the fund manager belongs that has shareholdings in excess of 50 percent in the fund manager, or a subsidiary in which the fund manager has shareholdings in excess of 50 percent, or a subsidiary belonging to the same holding company in which the holding company has shareholdings in excess of 50 percent.
Article 26-1     With respect to an offshore fund offered and sold by a master agent, the FSC may prescribe the total amount of the fund to be offered and sold in Taiwan as it deems necessary for management of the securities market.
Article 27     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 switch 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.
Article 28     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.
Article 29     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.
    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.
Article 31     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.
  2. A violation of the statement set out in Article 27, paragraph 1, subparagraph 10, , where serious in nature.
  3. A serious violation of the Article 12, paragraph 6 provision requiring prior FSC approval of changes, in which a change was made even though the FSC had rejected or disapproved the change.
  4. A serious violation of the total amount that may be offered and sold in Taiwan under Article 26-1.
  5. A violation of any subparagraph of Article 40, where serious in nature.
  6. 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.
  7. A violation of any other mandatory or prohibitive provision, where it would affect the rights and interests of investors, and is serious in nature.
Article 32     If, after the master agent has filed with the FSC for approval or registration of the offering and sale of any offshore fund but before approval has been granted or registration has become effective, there is an occurrence of any event set out in Article 12, paragraph 1 or any subparagraph of paragraph 6 in connection with the master agent, the offshore fund institution, or the offshore fund, or any change in the content of the application or filing documents, where there would be a material affect on the rights and interests of investors, the master agent shall report to the FSC within 3 days from the date of occurrence.
Article 59     These Regulations shall enter into force from the date of issuance, with the exception of Articles 13 and 24, amended and issued on 13 October 2015, of which Article 13 shall enter into force from 15 April 2016 and Article 24 shall enter into force from 15 October 2016.