Article 6 |
To issue or reopen ETNs, a securities firm shall submit the following documents to the TWSE or TPEx for review, to be then forwarded, together with the TWSE's or TPEx's review opinion and letter of approval for TWSE/TPEx listing, to the competent authority for filing for registration:
- A registration statement.
- An issuance plan.
- Minutes of the relevant board of directors meeting.
- A prospectus and a simplified prospectus.
- Documentary proof that the underlying index meets the requirements of Article 2, paragraph 3.
- Documentary proof that the securities firm meets the qualifying requirements for the issuance of ETNs as set out in Article 4, paragraph 1, subparagraphs 2, 3, and 8.
- Documentary proof that the securities firm meets the requirements of paragraph 2 of the preceding article.
- A statement of information on the current status of the ETNs (applicable only in the case of a reopening of ETNs).
- Other documents to be submitted in accordance with the requirements of the competent authority.
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Article 7 |
When a securities firm files for any of the following issuance registrations pursuant to the preceding article, its registration shall become effective when a prescribed number of business days have elapsed counting inclusively from the date upon which the competent authority receives the filing documents:
- In the case of filing for registration to issue ETNs, the registration shall become effective when 12 business days have elapsed counting inclusively from the date upon which the competent authority receives the filing documents.
- In the case of filing for registration to reopen ETNs, the registration shall become effective when 7 business days have elapsed counting inclusively from the date upon which the competent authority receives the filing documents.
If a securities firm files for registration to issue or reopen ETNs and during the period between its submission of the filing to the competent authority and the time of effective registration, an event occurs that has a material effect on shareholders' rights or interests (shareholders' equity) or securities prices as contemplated in Article 36, paragraph 3, subparagraph 2 of the Act, or its financial or business status undergoes a material change or there is a change in the content of its registration documents that has a material effect on the issuance plan, in addition to duly making an announcement and filing a report with the competent authority and the TWSE or TPEx within 2 days counting inclusively from the date of occurrence of the fact, the securities firm shall also obtain a professional opinion from an appropriate expert, as dictated by the nature of the event, and request the CPA to provide an opinion regarding the effect of the event on the current issuance plan, and file all the opinions with the TWSE or TPEx. The TWSE or TPEx shall then provide an opinion on the matter and submit a written report to the competent authority.
Where a securities firm fails to file registration documents in full, or the documents do not furnish all the required particulars, or a circumstance under the preceding paragraph occurs, but it makes full supplementations or corrections of its own accord prior to being notified by the competent authority of the suspension of effective registration, its registration shall become effective when the effective registration period of paragraph 1 has elapsed counting inclusively from the date upon which the competent authority receives the supplementary or corrective documentation.
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Article 8 |
Under any of the following circumstances, the competent authority may reject a securities firm's filing for registration to issue or reopen ETNs:
- The submitted registration documents are not submitted in full or do not furnish all the required particulars, and supplementation or correction cannot be completed by the deadline set by the competent authority.
- The securities firm does not comply with the requirements of Article 4.
- The securities firm does not comply with the requirements of Article 5, paragraph 2.
- There is a lack of appropriate risk management measures, or the design or implementation of its internal control system is materially deficient.
- The securities firm materially fails to prepare financial reports in accordance with applicable laws or regulations or generally accepted accounting principles.
- The securities firm files for registration to issue ETNs within 3 months counting inclusively from the date upon which it receives notification from the competent authority that a previous filing was rejected, voided, or revoked by the competent authority or that it withdrew a previous filing at its own discretion.
- The securities firm has already filed with the competent authority for registration to issue ETNs but the registration has not yet become effective. However, the same does not apply in the case of filing for registration to reopen ETNs.
- The securities firm has been incapable of meeting obligations in connection with a previous issue of ETNs.
- During the preceding year the securities firm failed to comply with TWSE or TPEx rules applicable to ETNs and was unable to make improvement within a specified time period.
- The competent authority discovers that the securities firm has committed any material violation of laws or regulations, or there is factual evidence of material irregularities with the securities firm's finances or business.
- The competent authority otherwise considers it necessary to reject registration in order to protect the public interest.
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Article 9 |
Under any of the following circumstances, the competent authority may suspend the effectiveness of a securities firm's filing for registration to issue or reopen ETNs:
- The filed registration documents are not submitted in full or do not furnish all the required particulars.
- Any of the circumstances under Article 7, paragraph 2 has arisen.
- The competent authority otherwise considers it necessary to suspend the effectiveness of registration in order to protect the public interest.
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Article 10 |
Beginning on the date upon which a securities firm receives written notice of suspension of effective registration, it may submit supplemental materials in response to the suspension reason(s), and apply for lifting the suspension. If the competent authority does not again notify it to submit supplemental materials or reject its filing, the registration shall become effective when the effective registration period set out in Article 7, paragraph 1 has elapsed counting inclusively from the date upon which the competent authority receives the supplementary or corrective documentation.
After an effective registration is suspended by the competent authority under the preceding article, if within 12 business days, counting inclusively from the date upon which it receives the written notice of suspension, the securities firm does not apply for lifting of the suspension in accordance with the preceding paragraph or it applies for lifting of the suspension but the suspension reasons still exist, the competent authority may reject its filing.
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Article 11 |
After a securities firm has obtained effective registration to issue or reopen ETNs, the competent authority may void or revoke the effective registration if it discovers any of the following circumstances:
- The issuance does not commence by the deadline set forth in Article 12 hereof, counting inclusively from the date upon which the securities firm receives the written notice of effective registration.
- Material violation of the provisions of Articles 16 and 17 hereof.
- Violation of the provisions of Article 20 of the Act.
- Violation of the provisions of Article 7, paragraph 2 hereof.
- The securities firm fails to announce or report to the competent authority, as required by Article 36, paragraph 3, subparagraph 2 of the Act, any event arising after the securities firm's effective registration for issuance of ETNs that has a material effect on investors' rights or interests, within 2 days counting inclusively from the date of occurrence of the fact.
- Any other necessity in order to protect the public interest, or other violation of these Regulations or of the restrictions or prohibitions of the competent authority in force at the time of effective registration.
When a securities firm's effective registration is voided or revoked by the competent authority, it shall handle the relevant matters in accordance with the ETN prospectus and applicable TWSE or TPEx rules.
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Article 12 |
After obtaining effective registration to issue or reopen ETNs, a securities firm shall commence the issuance or reopening of the ETNs within 3 months counting inclusively from the date upon which it receives the written notice of effective registration, provided that if the securities firm is unable to commence the issuance or reopened issuance within 3 months for a legitimate reason, then prior to the deadline it may apply to the competent authority for a one-time extension not to exceed 3 months.
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Article 13 |
After a securities firm has obtained effective registration to issue ETNs, except as otherwise provided by the competent authority, it may undertake the procedures to reopen the original issue if, for the 5 business days preceding the registration date, the average ratio of the number of units already issued to the number of units to be issued under the original effective registration is 80 percent or higher.
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