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Article 9
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A master agent shall meet the following qualifications:
- Have paid-in capital, appropriated operating capital, or exclusively allocated operating capital of not less than NT$70,000,000;
- 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 1 full fiscal year;
- Have the necessary information transmission facilities for real-time access to investment and relevant transaction information of the offshore fund institution;
- 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, subparagraph 1, of the Futures Trading Act, Article 44 of the Trust Enterprise Act, or Article 61-1, paragraph 1, of the Banking Act.
- Have not within the past 2 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, subparagraphs 2 to 4, of the Futures Trading Act, Article 44, subparagraphs 1 to 3, of the Trust Enterprise Act, Article 61-1, paragraph 1, subparagraphs 1 to 8 of the Banking Act, or Article 12-1, paragraph 1, subparagraphs 2 to 5 of the Financial Consumer Protection Act. However, this restriction does not extend to a disposition by the FSC ordering dismissal of personnel;
- Have business personnel and internal auditors meeting the qualification and staffing requirements as set out in Article 16 hereof;
- Have such other qualifications as may be prescribed by the FSC.
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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:
- The percentage of the offshore fund utilized in derivatives trading may not exceed the percentage as prescribed by the FSC;
- The offshore fund may not invest in gold, spot commodities, and real estate;
- 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;
- 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;
- 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.
- The offshore fund may not be denominated in New Taiwan Dollars or Renminbi;
- The offshore fund must have been established for 1 full year;
- The offshore fund has been approved by the competent authority of its place of registration to be offered to the public;
- 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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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:
- 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.
- The fund manager has not been sanctioned in connection with the handling of asset management business, with a record, by the competent authority of its home country during the past 2 years in any case in which it furthermore still has not remedied the issue.
- The fund manager has been established for at least 2 years.
- The fund manager or a member of the same corporate 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.
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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:
- Documents as required under subparagraphs 1 to 3, 5 to 7, 9, 11, and 15 of paragraph 1 of the preceding article;
- A written declaration by the offshore fund institution of its compliance with subparagraphs 2 and 5 of paragraph 1 of Article 23;
- Document evidencing that it is already listed and traded on a securities exchange;
- List of participating dealers, participation agreements, and the agreements signed between the master agent and participating dealers.
- 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.
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