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III. Application for registration of mainland China investors
1. New addition
(1) Basis:
Article 7 of the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland China Investors (the "Mainland China 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 China investors" in these Directions is restricted to the persons in the subparagraphs below:
1. Qualified institutional investors of the mainland China area ("mainland China institutional investors").
2. Employees of exchange listed or OTC listed companies to whom securities have been duly issued in accordance with law and regulation and who have household registrations in the mainland China area ("mainland China 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 OTC 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 China area ("mainland China shareholders").
(3) Application documents:
1. Registration application form: The agent of the mainland China investor shall fill out an "Application Form for Registration of Mainland China Investors Investing in ROC Securities or Trading of ROC Futures," Form 3-1.
Form 3-1: Application Form for Registration of Mainland China Investors Investing in ROC Securities or Trading ROC Futures
2. Documents to be attached: Mainland China investors applying for registration shall submit a complete set of the following documents:
2.1 The agent's power of attorney or the representative's letter of appointment.
2.2 Identification documents.
2.2.1 Mainland China institutional investors: A certificate or letter issued by the competent mainland China authority approving the institutional investor's establishment and its conformance with eligibility criteria.
2.2.2 Segregated collective investment account for mainland China national employees of foreign subsidiaries or branch companies of exchange-listed or OTC-listed companies: Documentation issued by the local government where the foreign subsidiary or branch company of the exchange-listed or OTC-listed company is located, showing approval for its establishment.
2.2.3 Mainland China shareholders:
1) Natural persons: A passport, national ID, or other photo identification papers sufficient to establish their identity and mainland Chinese nationality.
2) Juristic persons or other lawful entities: Documents issued by the mainland China government approving establishment.
2.3 Other documentation.
2.3.1 Mainland China institutional investors:
1) Documentation issued by the competent mainland China securities authority approving the qualifications of the institutional investor.
2) Documentation issued by the competent mainland China authority over foreign exchange business showing the approved limit on foreign investment.
2.3.2 Segregated collective investment account for employees of mainland Chinese nationality at foreign subsidiaries or branch companies of exchange-listed or OTC-listed companies:
1) An original copy of the declaration by the foreign subsidiary or branch company stating that it has obtained authorization from the employees of mainland Chinese nationality.
2) Photocopies of documents showing either approval by the competent authority or filing for effective registration for the issuance of new shares by the exchange-listed or OTC-listed company, 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 exchange-listed or OTC-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.
2.3.3 Mainland China 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 China shareholders prior to the exchange listing or OTC listing of the issuer.
2) An approval letter issued by the competent authority and the stock exchange or the GTSM approving the exchange listing or OTC listing of the foreign issuer.
2.4 If the mainland China 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 China 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 China Investor," Form 3-2.
Form 3-2: Certificate of Completed Registration for Mainland China Investors
2. Related materials: After the agent of the mainland China investor applying for registration has transmitted the registration application form through the TWSE system, the English version of the registration form (content must be identical to the form transmitted to the TWSE), personally signed by the mainland China 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 China investor's agent shall retain a full set of the documents set out in item 2 under (3) above, "Application Documents."
3. Denial of registration: The TWSE or TAIFEX may deny a mainland China investor's application for registration under any of the following circumstances:
3.1 The registration documents or particulars they list are found to be fraudulent or untrue.
3.2 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 five days following notification by the TWSE.
3.3 The investor is found to have committed a serious violation of the Mainland China Investor Regulations or the regulations governing securities or futures.
3.4 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 China 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 China investor or the investor's agent transmits the "Application for Registration of Name Change by Mainland China 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 China 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 China Investor
Form 3-4 Certificate of Completed Amendment of Registration by Mainland China Investor
2. Change of agent or representative:
After the mainland China investor or the investor's agent transmits the "Application for Registration of Change of Agent (or Representative) by Mainland China Investor," Form 3-3-2, online through the TWSE system and prints out the "Certificate of Completed Amendment of Registration by Mainland China 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 China 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 China Investor
3. Cancellation
(1) Application Processing:
1. When the agent of the mainland China investor applying for cancellation is a custodian bank, it shall transmit the "Application Form for Cancellation of Registration by Mainland China 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 China investor applying for cancellation is a futures commission merchant, it shall transmit the "Application Form for Cancellation of Registration by Mainland China 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.
Form 3-5 Application Form for Cancellation of Registration by Mainland China Investor
Form 3-6 Certificate of Completed Cancellation
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VI. Registration of two or more trading accounts opened at the same securities firm
1. An offshore foreign institutional investor or a mainland China institutional investor satisfying any of the following conditions may open two or more investment trading accounts at the same securities broker (including branches); however, such an application may not be filed for an original QFII sub-account unless it has already completed its application for supplemental registration of its identity as an offshore foreign institutional investor.
(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 offshore foreign institutional investor or mainland China institutional investor should transmit the completely filled out Registration Form for Opening Two or More Trading Accounts in 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 securities brokerage firm, personally signed by the offshore foreign institutional investor or mainland China institutional investor, along with the Registration Application Form for Opening Two or More Trading Accounts in the Same Securities Brokerage Firm. Only then may the agent (or representative) of the offshore foreign institutional investor or mainland China 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 Securities Brokerage Firm (Form 6-2) and a letter of application for account opening personally signed by the offshore foreign institutional investor or mainland China institutional investor.
Form 6-1 Registration Form for Opening Two or More Trading Accounts in the Same Securities Brokerage Firm
Form 6-2 Certificate of Completed Registration for Opening Two or More Trading Accounts in 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 offshore foreign institutional investor or mainland China institutional investor for such management operations.
(2) Where internal investment operations use different transaction platforms:
A description of the internal investment operations of the offshore foreign institutional investor or mainland China 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 offshore foreign institutional investor or mainland China institutional investor for such purpose.
4. When opening the account, the securities broker shall suffix the name of the offshore foreign institutional investor or mainland China 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 offshore overseas Chinese or foreign national, the mainland China institutional investor, or its agent (or representative) 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 Securities Brokerage Firm (Table 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 with the same securities brokerage firm, personally signed by the offshore foreign institutional investor or mainland China institutional investor, along with the Registration Application Form for Account Name Change Where Two or More Trading Accounts Have Been Opened in the Same Securities Brokerage Firm. Only then may the agent (or representative) of the offshore foreign institutional investor or mainland China 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 Securities Brokerage Firm (Table 6-4) and a letter of application for name change personally signed by the offshore foreign institutional investor or mainland China institutional investor.
6. Cancellation
The offshore overseas Chinese or foreign national or mainland China institutional investor or its agent (or representative) 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 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 with the same securities brokerage firm, personally signed by the offshore foreign institutional investor or mainland China institutional investor, along with the Account Cancellation Registration Application Form Where Two or More Trading Accounts Have Been Opened in the Same Securities Brokerage Firm. Only then may the agent (or representative) of the offshore foreign institutional investor or mainland China 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 Cancellation Where Two or More Trading Accounts Have Been Opened in the Same Securities Brokerage Firm (Form 6-6) and a letter of application for cancellation personally signed by the offshore foreign institutional investor or mainland China 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 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 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 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 Securities Brokerage Firm
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