| Article 5 |
Before using the Offshore Fund Observation Post System (FundClear) - Trading Platform (the "Trading Platform"), a master agent or sub-distributor shall first sign an agreement with TDCC and input relevant basic information including the offshore funds, the master agent, the sub-distributor, and any change thereto, into the Trading Platform in accordance with the requirements of TDCC.
A master agent or sub-distributor subscribing to offshore funds in its own name on behalf of customers shall be subject to these Rules. If, however, a master agent is involved only because a sub-distributor signing an agreement with it uses the Trading Platform and the master agent itself does not subscribe to offshore funds in its own name on behalf of customers, the master agent is exempted from the provisions of Articles 6 to 8, 11, 13, 18, 23, and 29.
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| Article 6 |
Before processing a customer's application for subscription of an offshore fund, a master agent or sub-distributor must first sign an agreement with the customer, and notify TDCC by inputting the customer's relevant basic information, financial institution cash account, and any change thereto, into the Trading Platform in accordance with the requirements of TDCC.
The master agent or sub-distributor shall fulfill its duty to inform the customer of TDCC's relevant requirements and operations with respect to the receipt and payment of monies ("payment operations") and verify that the cash account filed by the customer is an account opened by the customer.
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| Article 7 |
When receiving a customer's application for subscription of an offshore fund, a master agent or sub-distributor shall notify TDCC by inputting the subscription information into the Trading Platform within the timeframe and in the manner prescribed by TDCC.
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| Article 8 |
When a master agent or sub-distributor receives a customer's application for a single subscription of an offshore fund, the payment for the subscription may be made by any of the following methods:
- By money transfer: The customer remits the subscription payment into TDCC's dedicated cash account at its designated financial institution in accordance with the requirements of TDCC.
- By debit: The customer opens a cash account at a TDCC-designated financial institution, and submits a debit payment agreement or otherwise initiate debit authorization online to effect debit payment.
- By paying with redemption payments: The customer applies to use any redemption payment to pay the subscription payment for another offshore fund sold by the same sub-distributor.
When a master agent or sub-distributor receives a customer's application for subscription of an offshore fund through a regular savings plan (RSP), the payment shall be made by the debit method set out in subparagraph 2 of the preceding paragraph.
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| Article 9 |
After receiving customers' subscription payments into its account, TDCC will compare the subscription details with the subscription payment information, and then provide to the master agent a summary of the subscription details that are found to match and for which the subscription debit payments have been received, so that the master agent can carry out the subscription operations.
After carrying out the subscription operations with the offshore fund institution, the master agent shall notify TDCC through the Trading Platform. After receiving the notification from the master agent, TDCC will remit the subscription payments payable to the offshore fund institution into its dedicated cash account designated for the offshore funds.
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| Article 10 |
When receiving any subscription confirmation from an offshore fund institution, a master agent shall notify TDCC of the relevant details through the Trading Platform within the timeframe and in the manner prescribed by TDCC.
After receiving the subscription confirmation, TDCC will distribute the subscribed units to the customers of the master agent or sub-distributor, as the case may be.
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| Article 11 |
When receiving a customer's application for redemption of an offshore fund, a master agent or sub-distributor shall notify TDCC by inputting the redemption information into the Trading Platform within the timeframe and in the manner prescribed by TDCC.
A master agent shall place redemption orders with an offshore fund institution based on the summarized redemption information provided by TDCC.
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| Article 12 |
When receiving any redemption confirmation from an offshore fund institution, a master agent shall notify TDCC of the relevant information through the Trading Platform within the timeframe and in the manner prescribed by TDCC.
After receiving the relevant redemption payments and verifying their accuracy by comparing with the redemption confirmation, TDCC will distribute the redemption payments to the customers of the master agent or sub-distributor, as the case may be, and remit the redemption payments payable to the customers into their financial institution cash accounts, unless a redemption payment will be used to pay for another subscription, as described in Article 8, paragraph 1, subparagraph 3 of these Rules.
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| Article 13 |
When receiving a customer's application for switching of an offshore fund, a master agent or sub-distributor shall notify TDCC by inputting the switch information into the Trading Platform within the timeframe and in the manner prescribed by TDCC.
A master agent shall place switch orders with an offshore fund institution based on the summarized switch information provided by TDCC.
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| Article 14 |
When receiving any switch confirmation from an offshore fund institution, a master agent shall notify TDCC of the relevant information through the Trading Platform within the timeframe and in the manner prescribed by TDCC.
After receiving the switch confirmation, TDCC will distribute the switch-in units to the customers of the master agent or sub-distributor, as the case may be.
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| Article 15 |
After receiving notification from an offshore fund institution on any interest/proceeds distribution announcement, interest/proceeds distribution ratio, total amount of payments or total units, or other information of a similar nature, a master agent shall notify TDCC of the relevant information, and any change thereto, through the Trading Platform within the timeframe and in the manner prescribed by TDCC.
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| Article 16 |
After receiving information about the units to be distributed as interest/proceeds or cash payments of interest/proceeds, and verifying their accuracy by comparing with the interest/proceeds distribution information, TDCC will distribute the interest/proceeds units or payments to the customers of the master agent or sub-distributor, as the case may be, and, in the case of cash distribution, remit the interest/proceeds payments payable to the customers into their financial institution cash accounts.
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| Article 16-1 |
A sub-distributor operating brokerage business for trading and exchanging beneficial certificates of offshore funds shall, within the timeframe and in the manner prescribed by TDCC, use the Trading Platform to notify TDCC of the itemized details of trades and exchanges.
After receiving the itemized details, TDCC will save the information, and will provide it to the sub-distributor's customer for reference.
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| Article 17 |
When the offering and sale of an offshore fund is cancelled (not executed), the master agent shall notify the offshore fund institution to remit the refund payments into TDCC's dedicated cash account at its designated financial institution. After receiving the refund payments, TDCC will remit the payments payable to the customers into their financial institution cash accounts.
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| Article 18 |
A master agent or sub-distributor shall obtain customers' agreement authorizing TDCC to execute foreign exchange settlements with banks on behalf of customers in accordance with the relevant requirements of the Central Bank of the R.O.C. (CBC) when TDCC processes payment operations for subscriptions, redemptions, interest/proceeds, handling fees, liquidation, or otherwise with respect to offshore funds.
TDCC may negotiate a single buying or selling exchange rate with a bank for each foreign currency on a daily basis to execute the foreign exchange settlements under the preceding paragraph.
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| Article 19 |
Where a total amount is prescribed for the offering and sale of an offshore fund, or the offering and sale of an offshore fund is duly suspended, when the total amount limit is reached or the offering and sale is suspended, the master agent shall notify TDCC through the Trading Platform. After receiving the notification, TDCC will suspend the transmission of subscription details and the processing of payment operations with respect to the fund. The same shall apply when the offering and sale of the fund is resumed.
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| Article 20 |
In the event of any merger with, or transfer of business operations from or to another institution, a master agent or sub-distributor shall submit an application to TDCC to make relevant changes.
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| Article 21 |
TDCC shall separately adopt exceptional procedures for the handling of circumstances such as liquidation, merger, and suspension of transactions with respect to offshore funds, as well as suspension of business operations, liquidation, and bankruptcy with respect to master agents, sub-distributors, and offshore fund institutions.
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| Article 22 |
Upon termination of its agency or its offering and sale business for an offshore fund, a master agent or sub-distributor shall notify TDCC through the Trading Platform and assist customers with subsequent redemption, switching, or other relevant matters. After receiving the notification, TDCC will suspend the transmission of subscription information with respect to the fund. The same shall apply where the offering or sale of an offshore fund is voided or revoked by the Competent Authority.
To the extent necessary for it to assist customers with subsequent redemption, switching, or other relevant matters as described in the preceding paragraph, the master agent or sub-distributor may continue to use TDCC's operational services for transaction information transmission and payment operations.
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| Article 23 |
TDCC shall separately adopt procedures for the handling of any correction or adjustment/transition necessary as a result of an operational error or exception that occurs when a master agent or sub-distributor processes a customer's application for subscription, redemption, or switching, or other relevant matters with respect to an offshore fund.
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