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

Subsection 8　　Offshore Fund Master Agency Business

Article 36
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 7 herein, and in 
addition, the following documents:
1.A photocopy of document evidencing the approval from or effective registration 
　with the FSC for offering and sale of offshore funds in Taiwan;
2.Business plan (including business profile, operating process and 
　receipt/payment procedure); and
3.List of sub-distributors and a statement supporting the qualifications of 
　those sub-distributors.
When a securities enterprise acts as the master agent of an offshore ETF that 
is listed in NTD, the securities enterprise shall apply to the Bank for approval 
on a case-by-case basis.

Article 37
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 accepting orders to trade foreign securities 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 fund with denominated currency at the time of redemption.

Article 38
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 notify 
the Bank.