Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

A securities enterprise that intends to act as the master agent of an offshore fund institution in the offering and sale of its funds in Taiwan (hereinafter referred to as the“offshore fund master agency business” shall apply to the Bank for approval by submitting documents provided in Article 6 herein, and in addition, the following documents:

1.A photocopy of document evidencing the approval or effective registration with the FSC for offering and sale of offshore funds in Taiwan;

2.Business plan (including business introduction, operating and receipt/payment procedure); and

3.List of sub-distributors and a statement supporting the qualifications of those sub-distributors.

If the offshore ETF is listed in NTD, the application shall be filed on a case-by-case basis.

When a securities enterprise acting as a master agent for an offshore fund institution sells the funds or mandates its sub-distributors to handle the offering and sale of the offshore funds, the related receipt/payment shall be handled according to the following rules:

1.When the investor pays and receives funds directly to and from an offshore account designated by the offshore fund institution, the related receipt/payment for purchase and redemption between the investor and the offshore fund institution shall be made in foreign currency.

2.When the investor purchases the offshore fund through the account opened by the master agent at a domestic bank in the name of the offshore fund institution, or a bank account designated by the centralized securities depository enterprise, or a non-discretionary money trust managed by a trust enterprise, or a foreign securities brokerage agreement by a securities enterprise, the following applies:

(1)When the purchase is paid in NTD, relevant receipt/payment shall be made in NTD.

(2)When the purchase is paid in foreign currency, relevant receipt/payment shall be made in foreign currency.

(3)Upon receiving purchase payments and redemption proceeds that involve exchange settlement against NTD, the securities enterprise shall carry out exchange settlement promptly and remit the payments out to the offshore fund institution or remit the proceeds into the account designated by the investor.

3.When an investor purchases an offshore fund with foreign currency, and then switches into another offshore fund with a different currency, the investor may be paid with the denominated currency of the fund at the time of redemption.

When a master agent files a report with the FSC in events referred to in Article 12 of the Regulations Governing Offshore Funds, it shall send the Bank a copy of the report.