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Article 39
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When offering and distributing offshore funds, the master agent, the sub-distributor, or the participating dealer shall deliver the investment information summary and the Chinese translation of the prospectus to investors. However, this rule shall not apply to offshore ETFs that are traded on the stock exchange.
The investment information summary shall contain the following particulars:
- A statement introducing the master agent, the issuer of the offshore fund, the custodian institution, the sub-distributor(s), and any other relevant entities; if any related party relationships exist among them, an explanation of the relationships shall be given;
- A brief description of the offshore funds being offered and sold;
- The methods for purchase, redemption, and switch of offshore funds:
- Minimum purchase price;
- Method for payment of the price;
- Cut-off time for placing orders on each business day and the method for determining and handling late order documents;
- Procedures for purchase, redemption, and switch;
- Method for refund when the offering and sale of offshore funds fails to be executed;
- Rights, obligations, and duties of the master agent and the offshore fund institution;
- Information and services the master agent is required to provide;
- Method for handling disputes between the investor and the offshore fund institution, master agent, and/or sub-distributor;
- Methods for assisting in protecting the rights and interests of investors;
- Chart showing any fees to be borne by investors and the amount thereof or calculation basis therefor;
- Explanation of investment risks;
- Website on which investors may obtain relevant information;
- Types of certificates to be delivered representing the rights and interests of investors;
- In the case of the offering and sale of offshore ETFs, the following particulars shall also be specified:
- A brief description of the underlying index.
- A statement introducing the participating dealers.
- Methods and procedures of trading on the securities exchange or exchanges.
- Methods and procedures for purchase and redemption through participating dealers.
- Methods for exercise of rights by investors.
- Other items as may be prescribed by the FSC.
The investor information summary referred to in the preceding paragraph shall be updated within 1 month after the end of each quarter; the format thereof, and subsequent amendments thereto, shall be drafted by the SITCA and ratified by the FSC.
The master agent shall publicly announce any updates or amendments to the investor information summary within 3 days after the update or amendment.
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