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Article 6-1
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The following provisions shall apply with respect to a foreign currency denominated structured bond traded by a securities firm in OTC trading with high-asset customers:
- The offshore issuer or guarantor of the foreign currency dominated structured bond shall have its parent company or a branch or subsidiary in the territory of the Republic of China (Taiwan), which shall serve as the domestic agent thereof. The domestic agent shall be jointly and severally liable with the issuer or guarantor for the obligations of the foreign currency denominated structured bond. The domestic agent shall be a securities firm, bank, or insurance company established with the approval of the competent authority.
- If the offshore issuer of the foreign currency denominated structured bond is an overseas investee subsidiary or branch of a securities firm or domestic bank, the provisions of Article 6-2, paragraph 2 of the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities shall be complied with.
- If the securities firm meets the requirements of Article 5-1, paragraph 1, it may trade the foreign currency denominated structured bond meeting the requirements of the preceding subparagraph in OTC trading with professional institutional investors or high net worth juristic person investors.
- If the securities firm is a designated foreign exchange bank, or a bank's offshore banking branch, that concurrently operates securities dealing business, the relevant provisions of the Regulations Governing Banks Conducting Financial Products and Services for High-Asset Customers shall also apply.
The relevant reporting requirements of Article 10 of the Regulations Governing Offshore Structured Products shall apply mutatis mutandis to the aforementioned domestic agent in the territory of the Republic of China (Taiwan) of the offshore issuer or guarantor of the foreign currency dominated structured bond.
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