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Title	Taiwan Depository & Clearing Corporation Directions for Offshore Fund Order Routing Operation CH
Date	2018.01.02 ( Amended )

Article Content

Chapter 1 General Principles

Article 1	These Directions are adopted pursuant to Article 30 of the Taiwan Depository & Clearing Corporation ("TDCC") Operating Rules for Offshore Funds.
Article 2	Master agents, sub-distributors, insurer-authorized custodians, and other user institutions (collectively, "Users") may send order information on the subscription, redemption, switching, and other transaction of offshore funds (collectively, "order information"), receive order status reports and transaction confirmations, or otherwise conduct fund order routing operations through the order routing services jointly provided by TDCC and order routing service providers ("Service Providers"). TDCC is responsible for providing the order routing service between Users and Service Providers, while Service Providers are responsible for providing the order routing service between TDCC and offshore fund institutions.
Article 3	TDCC and Service Providers are responsible only for offshore fund order routing. Users are solely responsible to check with offshore fund institutions about acceptable orders as well as the legality of and restrictions on the transmitted content, and are solely liable for the obligations arising from offshore fund transactions. In the event of any dispute, it is Users' sole responsibility to contact the offshore fund institutions.

Chapter 2 Connection Applications and Basic Information Maintenance

Article 4	When applying to use the TDCC fund order routing platform (the "Platform"), a User shall have an electronic certificate issued by Taiwan-CA Inc. ("Taiwan-CA certificate") and submit an application to TDCC together with the following documents: Fund Order Routing System User Agreement (for Master Agents, Sub-Distributors, and Other User Institutions Only). Specimen seal/signature card in duplicate. Application for Use of Fund Order Routing Platform. Documentation of company registration (not required if already provided in a separate application to use another fund operating platform of TDCC and if there is no change thereto). A User applying for computer connection to use automatic transmission via Secure File Transfer Protocol (SFTP) shall additionally submit an Application for Connection to Fund Order Routing Platform.
Article 5	Upon receiving the application from the User, TDCC will, after reviewing and verifying the accuracy of the relevant documents, input the User's information into the Platform including the institution code, authorized user's name, user ID, initial password, and Taiwan-CA certificate PIN, and then notify the User.
Article 6	After receiving the notification from TDCC, the User shall perform a "User Password Change" transaction to change its initial password, and then a "System User Maintenance" transaction to add system users and set their use authorization for relevant operations.
Article 7	After completing the operations under the preceding Article, the User shall perform an "Institution Basic Information Maintenance" transaction to notify TDCC of relevant information including the company name, company responsible person, address, contact person, telephone number, and any change thereto. The User may perform an "Institution Information Query" transaction to query its basic information.

Chapter 3 Offshore Fund Order Routing Operations

Article 8	When first designating a Service Provider, a User shall perform the following: The User shall complete an Application for Designation of Order Routing Service Provider, affixed with its seal/signature on file, and submit it, together with a document evidencing the consent of the Service Provider, to TDCC for application. The User shall notify the offshore fund institutions on the Service Provider relationship and agree with them on the effective live date, servicing scope, contingency arrangement, and other operational related procedures.
Article 9	To change its designated Service Provider, a User shall perform the following: The User shall, with the first business day of the next month as the effective live date, and by 10 business days before the effective live date, complete an Application for Designation of Order Routing Service Provider, affixed with its seal/ signature on file, and submit it, together with a document evidencing the consent of the Service Provider, to TDCC for application. Before the effective live date, the User shall have agreed with the offshore fund institutions on how to handle offshore fund order information for which the transaction confirmation procedure has not been completed ("in-progress transactions") as well as the transition arrangement for order routing and other operational related procedures.
Article 10	A User's use of the order routing service available on the Platform shall be limited to offshore funds for which its designated Service Provider has agreed with the corresponding offshore fund institutions on such order routing operations.
Article 11	A User shall use the Platform to send and receive offshore fund order information, order status reports, transaction confirmations, and other relevant information in a format prescribed by TDCC.
Article 12	A User shall use the Platform to send or receive offshore fund order information during the transmission hours prescribed by TDCC, and shall check and verify the accuracy of the information. Upon receiving offshore fund order information from a User, TDCC shall check the information format and then immediately forward the order information to the Service Provider. The Service Provider shall then promptly forward the order information to the offshore fund institution after completing the verification operation.
Article 13	A User shall control its own operations to meet the transmission time limit set out in paragraph 1 of the preceding Article, and shall perform the following by an offshore fund's dealing cut-off time: Send offshore fund order information. Always make sure to query for and receive order status reports. Ensure that the offshore fund institution has received the current-day order information. If an order status report shows the order as rejected, investigate the reason for the rejection. When necessary, use a different order number and resend the order information. To avoid delay in order placement, immediately contact the offshore fund institution if the User does not receive an order status report when the offshore fund's dealing cut-off time approaches.
Article 14	Where a User intends to cancel or correct (amend) its offshore fund order information after sending it through the Platform, the User shall notify the offshore fund institution by fax or in another manner as agreed with the offshore fund institution.
Article 15	In the event of any transfer, liquidation, merger, suspension, cancellation or termination of the offering and sale, or voidance or revocation of the approval or effective registration of an offshore fund, the relevant Users shall check with the offshore fund institution to see whether it continues to accept orders for the fund.
Article 16	If a User, due to an IT system issue or its business needs, intends to perform relevant operations after the transmission hours prescribed by TDCC, the User shall, by the transmission time limit, submit a completed Application for Extension of Operational Time, affixed with its seal/signature on file, to TDCC for application. If it submits the application by fax on the given day, it shall deliver the original document to TDCC on the next business day.
Article 17	A User shall enter into a written agreement with an offshore fund institution stipulating that the placement of subscription, redemption, switching, and other orders for its offshore funds shall be carried out in a mutually agreed manner in case of equipment breakdown, system failure or outage, data damage, or a force majeure event that disrupts the normal transmission of information.
Article 18	TDCC shall immediately forward the offshore fund transaction confirmation information received from a Service Provider to the relevant User. A User shall use the Platform to query for and receive the transaction confirmation information sent as a reply by an offshore fund institution during the transmission hours prescribed by TDCC. After receiving transaction confirmation information from an offshore fund institution, a User shall immediately reconcile the information against its own reports or records to ensure the accuracy of the transaction information.
Article 19	A User shall have and maintain the eligibility to place offshore fund orders, and shall comply with offshore fund laws and regulations, domestic and foreign laws, regulations, and directions for anti-money laundering (AML) and combating the financing of terrorism (CFT), as well as fund prospectus and other applicable requirements.

Chapter 4 Offshore Fund Automated Cross-Platform Order Routing Operations

Article 19-1	A master agent may send or receive order information, order status reports, transaction confirmations, and other relevant information with respect to offshore funds through TDCC's automated cross-platform order routing operations provided for the integration of its fund trading platform and the Platform ("cross-platform order routing"). A master agent applying to use the operational service under the preceding paragraph shall sign a Fund Order Routing System User Agreement with TDCC and notify TDCC by submitting a completed Application for Use of Fund Trading Platform, in which case Articles 4 to 7, 11 to14, and 18 do not apply.
Article 19-2	A master agent shall, after verifying the accuracy of any offshore fund order information, and during the transmission hours prescribed by TDCC, perform an "Offshore Fund Cross-Platform Order Routing - Conversion of File" transaction over the fund trading platform and send the relevant order information to the offshore fund institution through the Service Provider. The master agent shall control its own operations to meet the transmission time limit set out in the preceding paragraph, and, by the offshore fund institution's dealing cut-off time, perform an "Offshore Fund Cross-Platform Order Routing Status Query" transaction to query and verify that the offshore fund institution has received the current-day order information. If the result of the order status query shows the order as rejected, or the offshore fund institution has not received the current-day order information, the master agent shall immediately contact the offshore fund institution to handle the matter.
Article 19-3	If a mater agent intends to correct the order information described in the preceding Article, it shall do so in accordance with the provisions of Chapter 12 of the TDCC Directions for Offshore Fund Transaction Information Transmission and Payment Operations with respect to the correction of transaction information by sub-distributors, and notify the offshore fund institution by fax or in another manner as agreed with the offshore fund institution.
Article 19-4	After an offshore fund institution sends any offshore fund transaction confirmation information through the cross-platform order routing service, the master agent shall perform an "Offshore Fund Subscription Transaction Confirmation," an "Offshore Fund Redemption Transaction Confirmation," or an "Offshore Fund Switch Transaction Confirmation" transaction over the fund trading platform to query and verify the accuracy of the transaction confirmation sent as a reply by the offshore fund institution. If a master agent intends to correct the transaction confirmation described in the preceding paragraph after TDCC has completed the pre-distribution or distribution procedure for the units or payment(s), it shall notify the offshore fund institution and correct the information in accordance with the provisions of Chapter 12 of the TDCC Directions for Offshore Fund Transaction Information Transmission and Payment Operations with respect to the correction of transaction confirmations by master agents.

Chapter 5 Supplementary Provisions

Article 20	A User is a third-party beneficiary of the agreement between TDCC and the Service Provider and is entitled to directly require the Service Provider to perform its offshore fund order routing obligations under Article 2, paragraph 2 hereof. The User is entitled to directly claim damages from the Service Provider for any damage caused to the User as a result of the Service Provider's deliberate intent or negligence.
Article 21	Where offshore fund institutions are prohibited from engaging in transactions with entities or individuals subject to economic sanctions pursuant to the requirements of the United Nations, the European Union, the United States Office of Foreign Assets Control (OFAC), or other economic sanctions laws and regulations, TDCC and the Service Providers may review the transmitted content for regulatory compliance purposes and may also defer or refuse to provide offshore fund order routing service.
Article 22	TDCC shall retain the information related to its fund order routing operations for a minimum of 1 year.
Article 23	Any matters on which these Directions are silent shall be governed by the TDCC Operating Rules for Offshore Funds and other applicable provisions.