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Article NO. Content

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 (Articles 1, 2, 3, 5 amended,English version coming soon)
Current English version amended on 2019.02.12 
Categories: Securities Exchange Market > Trading > Securities Transaction
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: Company registration certificate registered with the competent authority governing the foreign institutional investor, 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: Company registration certificate registered with the competent authority governing the foreign institutional investor, 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.