| Article 8 |
A SITE that offers a fund shall invest in securities in accordance with the type and characteristics of the fund. SITE investment in domestic securities shall be restricted in scope and type to the following:
1. Listed securities.
2. Securities traded on the over-the-counter market in accordance with Article 3 of the GreTai Securities Market Regulations Governing Review of Securities Traded on Over-the-Counter Markets ("OTC securities").
3. Securities having received FSC approval for underwriting or effective registration.
4. Government bonds or publicly offered and issued corporate bonds and financial bonds.
5. Certificates of beneficial interest issued by a SITE.
6. Bonds of international financial organizations approved by the FSC.
7. Other investments approved by the FSC.
The types and the scope of funds offered domestically by a SITE for investment in foreign securities shall be prescribed by the FSC. |
| Article 9 |
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| Article 10 |
A SITE offering a trust fund shall utilize the fund's assets in accordance with these Regulations and the provisions of the trust agreement, and except where otherwise provided by the FSC, shall comply with the following provisions:
1. The SITE may not invest in non-listed or non-OTC-listed stocks or privately-placed securities.
2. The SITE may not make loans or provide security.
3. The SITE may not engage in securities margin transactions.
4. The SITE may not engage in trading of securities or securities-related products between the various other funds, collective trust funds, discretionary accounts, or accounts for trading of securities with self-owned funds under the common management of the SITE, provided that this shall not apply in the case of cross-trades unintentionally occurring on a centralized securities exchange market or on Over-the-Counter Markets.
5. The SITE may not invest in its own securities or in securities issued by any company that is an interested company relative to the SITE.
6. The SITE may not use a fund to purchase the certificates of beneficial interest of that same fund, provided that this restriction shall not apply in the case of beneficiaries' requests for redemption of certificates of beneficial interest, or when certificates of beneficial interest are redeemed because of the discontinuance of all or some part of the fund.
7. The SITE may not invest in structured interest rate products, provided that this restriction shall not apply when such products are a fund's principal investment vehicle and are so designated by the fund's name.
8. The total amount invested by any fund in the stocks, corporate bonds, or financial bonds of any single listed or OTC-listed company may not exceed ten percent of the net asset value of the fund.
9. The total amount invested by any fund in the shares of any single listed or OTC-listed company may not exceed ten percent of the total issued and outstanding shares of that company; the total amount invested by all funds under the common management of a SITE in the shares of any one listed or OTC-listed company may also not exceed ten percent of the total issued and outstanding shares of that company.
10. The total amount invested by any fund in an underwriting of shares of any single listed or OTC-listed company may not exceed one percent of the total shares underwritten; the total amount invested by all funds under the common management of a SITE in any single underwriting may not exceed three percent of the total of underwritten shares being.
11. The total amount invested by a fund in the certificates of beneficial interest of other funds may not exceed 10 percent of the first fund's total asset value, provided that this restriction shall not apply in the case of a fund of funds or exchange-traded funds under Article 37, paragraph 4.
12. The total number of beneficial units of any single fund, with the exception of exchange-trade funds under Article 37, paragraph 4, that may be invested in by all funds under the common management of a SITE may not exceed ten percent of the issued beneficial units of the fund being invested in.
13. The total amount invested by a fund in the unsecured corporate bonds of any single company may not exceed ten percent of the unsecured corporate bonds issued by that company.
14. The securities held by a fund may not be loaned to another person, provided that this restriction shall not apply given compliance with Article 14.
15. Proxy forms for shareholders' meetings of an issuing company whose shares are purchased by a fund may not be sold or transferred.
16. No fund may authorize stock trades by any one securities firm that exceed 30 percent of the total monetary value of the fund's stock trades in the given month. This provision shall not apply, however, to funds that have been established for less than one full fiscal year.
17. The total amount any fund may invest in a bills finance company's guaranteed bills may not exceed ten percent of the fund's total asset value, and may also not exceed 500 million New Taiwan Dollars.
18. The total amount invested by a fund in the international financial institution bonds issued by any single international financial institution with FSC approval to issue such bonds within Taiwan may not exceed ten percent of the fund's net asset value, and may not exceed ten percent of the international financial institution bonds issued within Taiwan by the given international financial institution.
19. The SITE may not engage in any improper trading activity and thereby affect the net asset value of a fund under its management.
20. The SITE may not engage in any other act prohibited by the FSC.
The term "various funds" in subparagraph 4 of the preceding paragraph and the term "all funds under the common management of a SITE" in subparagraphs 9, 10, and 12 include securities investment trust funds and futures trust funds publicly or privately offered by a SITE.
The ceiling on the ratio of a SITE's use of a fund for investment in an underwritten stock shall be calculated by combining the amount of that investment with the shares of listed and OTC-listed companies of a similar type held to arrive at the total number of shares or total monetary amount; the amount of investment in depositary receipts shall be combined with the shares held in the issuing company of the depositary receipts, and the ceiling on the ratio of investment in that company similarly based on the combined figures for either monetary values or numbers of shares.
"Corporate bonds" as referred to in paragraph 1, subparagraphs 8-12 shall include common corporate bonds, convertible corporate bonds, exchangeable corporate bonds, and corporate bonds with warrants. |
| Article 11 |
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| Article 12 |
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| Article 13 |
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| Article 14 |
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| Article 15 |
A SITE that offers a fund for investment in beneficial securities or asset-backed securities issued in accordance with the Financial Asset Securitization Act, with the exception of those approved as short-term bills by the competent authority, shall observe the following conditions:
1. The fund shall be restricted to investment in beneficial securities or asset-backed securities which have obtained FSC approval or effective registration.
2. The total amount invested by a fund in beneficial securities or asset-backed securities issued by any single trustee institution or special-purpose company may not exceed ten percent of the total value of the given issue (or tranche, where the issue is tranched); the invested amount may also not exceed ten percent of the total asset value of the fund.
3. The total monetary amount invested by a fund in the stocks, corporate bonds, or financial bonds issued by any single originator and the beneficial securities or asset-backed securities issued by any single originator through entrusting financial assets to a trustee organization or assigning financial assets to a special-purpose company may not exceed ten percent of the total asset value of the fund.
4. The beneficial securities or asset-backed securities in which the fund invests shall have a credit rating at or above a prescribed level from an FSC-approved or recognized credit-rating institution.
When a SITE is an interested company as referred to in Article 10, paragraph 1 with respect to any originator, trustee institution or special-purpose company connected with beneficial securities or asset-backed securities, the SITE may not utilize fund assets for investment in those beneficial securities or asset-backed securities. |
| Article 16 |
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| Article 17 |
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| Article 18 |
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