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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 that is permitted to provide custodian services, and meets the conditions prescribed by the FSC:
- Where the master agent represents funds managed by one offshore fund manager, NT$30,000,000;
- Where the master agent represents funds managed by two offshore fund managers, NT$50,000,000;
- Where the master agent represents funds managed by three offshore fund managers, NT$70,000,000.
- Where the master agent represents funds managed by four offshore fund managers, NT$90,000,000;
- Where the master agent represents funds managed by five offshore fund managers, NT$110,000,000.
Except for investments in offshore funds through a non-discretionary trust of money 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.
In the calculation of the number of offshore fund managers under paragraph 1, if multiple offshore fund managers represented by the master agent are enterprises of the same corporate group, they will be deemed one offshore fund manager.
In these Regulations, the term "member of the same corporate group" means a holding company to which a 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 another subsidiary belonging to the same holding company in which the holding company has shareholdings in excess of 50 percent.
Any master agent that, before the enforcement of the 28 December 2022 amendment to these Regulations, already represents funds managed by four or more offshore fund managers shall make up in full the amount of operating bond required under paragraph 1 within 3 months from the date of enforcement of the amendment.
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