S
M
L

Search Result

Title Taiwan Depository & Clearing Corporation Directions for Offshore Fund Transaction Information Transmission and Payment Operations CH
Date 2022.01.05 ( AMENDMENT )

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.
Chapter 2 Operations Related to Connection Applications
Section 1 Master Agents
Article 2     When first applying to use the Offshore Fund Observation Post System (FundClear) - Trading Platform (the "Trading Platform")the TDCC Offshore Fund Trading Platform (the "Trading Platform") to conduct operations of transaction information transmission and receipt and payment of monies ("payment operations") for offshore funds, a master agent shall have an electronic certificate issued by Taiwan-CA Inc. ("Taiwan-CA certificate") and submit an application to TDCC together with the following documents:
  1. Agreement
    1. Offshore Fund Transaction Information Transmission and Payments Agreement (for Master Agents): The master agent shall use this agreement form if it subscribes to offshore funds in its own name on behalf of customers.
    2. Offshore Fund Transaction Information Transmission and Payments Agreement (for Master Agents Not Engaging in Omnibus Account Business): The master agent shall use this agreement form if a sub-distributor with which it has signed an agreement uses the Trading Platform and the master agent itself does not subscribe to offshore funds in its own name on behalf of customers.
  2. Specimen seal/signature card in duplicate.
  3. Application for Use of Fund Trading Platform.
  4. 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).
Article 3     When applying to use the TDCC Trading Platform, a master agent's branch office shall have a Taiwan-CA certificate and complete an Application for Use of Fund Trading Platform. The head office shall submit an application to TDCC for the branch office.
Article 4     Upon receiving the application from the master agent, TDCC will, after reviewing and verifying the accuracy of the relevant documents, input the master agent's information into the Trading Platform including the institution code, authorized user's name, user ID, initial password, and Taiwan-CA certificate PIN, and then notify the master agent.
Article 5     After receiving the notification from TDCC, the master agent 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. If the connection application is submitted for a branch office, the head office shall notify the branch office to change password and maintain system users.
Section 2 Sub-Distributors
Article 6     When first applying to use the TDCC Trading Platform, a sub-distributor shall have a Taiwan-CA certificate and submit an application to TDCC together with the following documents, after the master agent of the offshore fund(s) has completed the agreement-signing and connection application procedures with TDCC:
  1. Offshore Fund Transaction Information Transmission and Payments Agreement (for Sub-Distributors).
  2. Specimen seal/signature card in duplicate.
  3. Application for Use of Fund Trading Platform.
  4. 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).
Article 7     When applying to use the TDCC Trading Platform, a sub-distributor's branch office shall have a Taiwan-CA certificate and complete an Application for Use of Fund Trading Platform. The head office shall submit an application to TDCC for the branch office.
Article 8     Upon receiving the application from the sub-distributor, TDCC will, after reviewing and verifying the accuracy of the relevant documents, input the sub-distributor's information into the Trading Platform including the institution code, authorized user's name, user ID, initial password, and Taiwan-CA certificate PIN, and then notify the sub-distributor.
Article 9     After receiving the notification from TDCC, the sub-distributor 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. If the connection application is submitted for a branch office, the head office shall notify the branch office to change password and maintain system users.
Section 3 Sub-Distributors Opening Accounts with Offshore Fund Institutions
Article 10     When opening an account with an offshore fund institution, a sub-distributor shall perform the following:
  1. When the sub-distributor opens an account with the offshore fund institution, it shall, on the "redemption account information" column of the application form, fill in TDCC's dedicated bank accounts specifying the following information:
    1. Beneficiary Bank: Hua Nan Commercial Bank, Fuhsing Branch
      2. BANK NAME:
      HUA NAN COMMERCIAL BANK LTD. FUHSING BRANCH, TAIPEI, TAIWAN
      SWIFT CODE: HNBKTWTP127
    2. Beneficiary Name:
      1. Receipt of payments based on offshore fund institution:
        2. TAIWAN DEPOSITORY & CLEARING CORPORATION
      2. Receipt of payments based on sub-distributor:
        3. TDCC/English Name of Sub-Distributor
    3. Beneficiary Account Number:
      1. Receipt of payments based on offshore fund institution:
        2. 93700+[Offshore Fund Institution code]+000000
      2. Receipt of payments based on sub-distributor:
        3. 93700+[Offshore Fund Institution code]+[Sub-Distributor code]
    If there is any change to the information on the above TDCC dedicated bank accounts, TDCC shall give a 1-month prior notice to the sub-distributor and its master agent. The sub-distributor and master agent shall immediately notify the offshore fund institution to carry out corresponding operations and, when completed, notify TDCC.
    For information on the redemption accounts, the sub-distributor may perform a "Payment Receiving Account Number Query" transaction or inquire with TDCC.
  2. After the sub-distributor completes the account opening procedure with the offshore fund institution, the master agent shall perform an "Account Opening/Change Application" transaction to notify TDCC of the opened account and the redemption account information, and shall do the same in the event of any change thereto.
  3. After verifying the accuracy of the redemption account information of the sub-distributor, and confirming that the master agent and sub-distributor have completed the basic information maintenance procedures, TDCC will notify the master agent or sub-distributor of the availability of the TDCC Trading Platform for conducting offshore fund subscription, redemption, switching, and other relevant operations. If TDCC discovers any discrepancy in the above information, it will notify the master agent and sub-distributor to make necessary corrections.
Chapter 3 Basic Information Maintenance
Section 1 Master Agents
Subsection 1 Master Agent Institution Information Maintenance
Article 11     After signing an agreement with TDCC, a master agent shall perform an "Institution Basic Information Maintenance" transaction to notify TDCC of relevant information including the names of the head office and branch office, company responsible person, financial institution cash account number, address, contact person, telephone number, and any change thereto.
Article 12     After signing a sub-distributor agreement with a sub-distributor, a master agent shall perform a "Sub-Distributor Maintenance" transaction to notify TDCC of the information of the sub-distributor signing an agreement to use the Trading Platform, the fund(s) to be sold by the sub-distributor, and any change thereto.
Article 13     A master agent may perform an "Institution Information Query" transaction to query relevant information including its basic information and the information of a sub-distributor.
Subsection 2 Offshore Fund Institution Information Maintenance
Article 14     A master agent shall perform an "Offshore Fund Institution Basic Information Maintenance" transaction to notify TDCC of relevant information including the name of the offshore fund institution, the name of the financial institution where its dedicated cash account is held, the account number, the account name, the remittance method of subscription payments (based on offshore fund institution or based on sub-distributor), and any change thereto.
Article 15     A master agent may perform an "Offshore Fund Institution Information Query" transaction to query the basic information of an offshore fund institution.
Subsection 3 Fund Information Maintenance
Article 16     After an offshore fund represented by a master agent is approved by or effectively registered with the Competent Authority for domestic offering and sale, the master agent shall perform an "Offshore Fund Basic Information Maintenance" transaction to notify TDCC of relevant information including the fund name, fund type, fund manager, investment portfolio, investment regions, minimum redemption units, minimum holding units, minimum subscription amount, settlement period for switching, interest/proceeds distribution method, and any change thereto.
Article 17     A master agent shall notify TDCC of any transfer, termination of offering and sale, voidance or revocation of approval or effective registration, or other similar event with respect to an offshore fund represented by it.
    A master agent shall perform an "Offshore Fund Status Setting" transaction to notify TDCC of any suspension of transactions of an offshore fund represented by it.
Article 18     If a master agent provides customers with an option to switch between offshore funds represented by it, it shall perform an "Offshore Fund Switch Series Maintenance" transaction to notify TDCC of the switch information, and any change thereto.
Article 19     A master agent may perform an "Offshore Fund Information Query," an "Offshore Fund Switch Series Query," or an "Offshore Fund Net Asset Value Query" transaction to query the relevant information of an offshore fund represented by it.
Subsection 4 Subscription Fee Allocation Ratio Maintenance
Article 20     A master agent shall perform a "Subscription Fee Allocation Ratio Maintenance" transaction to notify TDCC of relevant information including the method of allocating subscription fee rates between it and each sub-distributor, the allocation ratio, the preferential rate period, and any change thereto.
Article 21     A master agent may perform a "Subscription Fee Allocation Ratio Query" transaction to query the relevant information of the allocation of subscription fees.
Section 2 Sub-Distributors
Subsection 1 Sub-Distributor Institution Information Maintenance
Article 22     After signing an agreement with TDCC, a sub-distributor shall perform an "Institution Basic Information Maintenance" transaction to notify TDCC of relevant information including the names of the head office and branch office, company responsible person, financial institution cash account number, address, contact person, telephone number, and any change thereto.
Article 23     A sub-distributor may perform an "Institution Information Query" transaction to query its basic information.
Subsection 2 Subscription Fee Rate Maintenance
Article 24     A sub-distributor shall perform a "Subscription Fee Rate Maintenance" transaction to notify TDCC of the handling fee rates required to be borne by customers for subscription of the funds it sells.
Article 25     A sub-distributor may perform a "Subscription Fee Rate Query" transaction to query the relevant information of its customer subscription fee rates.
Subsection 3 Customer Information Maintenance
Article 26     When a sub-distributor opens an account for a customer who agrees to subscribe to offshore funds in the name of the sub-distributor, it shall initially check a photocopy of the customer's financial institution passbook and verify that the financial institution account filed by the customer is an account opened by the customer. It shall then perform a "Customer Basic Information Maintenance" transaction to notify TDCC of relevant information including the customer name, account number, national ID number/business administration number/uniform identification number, identity type, financial institution cash account number, and any change thereto.
Article 27     A sub-distributor may perform a "Customer Basic Information Query" transaction to query relevant customer information.
Subsection 4 Inquiries
Article 28     A sub-distributor may perform an "Offshore Fund Institution Information Query," an "Offshore Fund Information Query," an "Offshore Fund Switch Series Query," an "Offshore Fund Net Asset Value Query," or a "Subscription Fee Allocation Ratio Query" transaction to query relevant information.
Chapter 4 Subscription
Section 1 Transaction Information Inputting and Payments Processing
Subsection 1 Single Money Transfer Subscription
Article 29     When receiving a customer's application for a single subscription of an offshore fund by money transfer ("single money transfer subscription"), a sub-distributor shall initially review and verify the accuracy of the customer's application details. It shall then, by 3 p.m. on the same day, perform an "Offshore Fund Single Subscription" transaction (payment type: money transfer), or otherwise upload a file via File Transfer Protocol (FTP), to notify TDCC of the subscription details including the customer account number, the fund name, the subscription amount, and the interest/proceeds distribution method. The sub-distributor may print a "Subscription Payment Remittance Notice" and an "Offshore Fund Transaction Application Details" report for notification to the customer.
Article 30     The sub-distributor shall notify the customer to remit, by 3 p.m., the subscription payment (including the subscription fee) into TDCC's dedicated cash account at its designated payment agent, and must verify that the customer's subscription payment is remitted by the customer or from the customer's account. TDCC will separately announce information on the above dedicated cash account and any change thereto.
Article 31     By 3 p.m., TDCC will compare the subscription details notified by the sub-distributor with the inward remittance information as notified by its designated payment agent. The comparison procedure is completed if the received remittance is sufficient to pay the customer's subscription payment (including the subscription fee). If the customer's subscription payment is received into TDCC's dedicated cash account after 3 p.m., TDCC will compare the remittance with the subscription details on the next business day.
Article 32     The sub-distributor may perform an "Offshore Fund Subscription Details Query" transaction to query for or print an "Offshore Fund Subscription Details Report" and check the customer's relevant subscription details and the inward remittance status of the subscription payment. If any irregularity occurs, the sub-distributor shall notify the customer to handle the matter.
Article 33     When the sub-distributor checks the customer's subscription details and discovers any discrepancy, or when the customer's subscription payment is not remitted by the customer or from the customer's account, it shall, by 3 p.m., perform an "Offshore Fund Single Subscription Details Maintenance" transaction and cancel that subscription transaction after review by its supervisory personnel. It shall then re-input the verified correct subscription details following the procedure set out in Article 29.
Article 34     TDCC will perform one of the following procedures for any subscription details or payment for which the comparison procedure cannot be completed by 3 p.m.:
  1. Subscription details without corresponding subscription payments For a customer's subscription details without a corresponding inward remittance for the subscription payment, TDCC will check its inward remittance records each business day. If the comparison procedure still cannot be completed within 5 business days from the customer's subscription application date, the subscription details will be canceled.
  2. Inward remittances without corresponding subscription details For an inward remittance without corresponding subscription details, TDCC will check its subscription details records each business day. If the comparison procedure still cannot be completed within 5 business days from the inward remittance date, or if TDCC receives a refund request from the remitter, then on the next business day TDCC will notify its designated payment agent to remit the received amount, after deducting the remittance charge, into the remitter customer's financial institution cash account.
  3. Subscription details with insufficient subscription payments For a customer's subscription details with an insufficient subscription payment, TDCC will check its inward remittance records each business day. If the comparison procedure still cannot be completed within 5 business days from the customer's subscription application date, the subscription details will be canceled.
  4. Inward remittances with insufficient subscription payments For an inward remittance of an insufficient amount, TDCC will check its subscription details records each business day. If the comparison procedure still cannot be completed within 5 business days from the inward remittance date, or if TDCC receives a refund request from the remitter, then on the next business day TDCC will notify its designated payment agent to remit the received amount, after deducting the remittance charge, into the remitter customer's financial institution cash account.
Subsection 2 Seal/Signature Verification for Debit Agreements
Article 35     When receiving a customer's application for debit payment, a sub-distributor shall review the customer's Fund Debit Payment Agreement ("Debit Agreement") with respect to the following:
  1. The financial institution authorized by the customer to execute debit payment shall be a TDCC-designated payment bank or a financial institution participating in the nationwide Bill Payment System (collectively, "debit bank").
  2. The customer shall affix the seal/signature filed when opening the account with the debit bank.
Article 36     After reviewing and verifying the accuracy of the debit details, the sub-distributor shall affix its seal/signature on the Debit Agreement, and, by 6 p.m., perform a "Debit Agreement Seal/Signature Verification - Creation of File" transaction to notify TDCC of the debit information including the customer account number, the seal/signature verification application date, and the customer's debit account number.
Article 37     After the creation of file for the customer's seal/signature verification application, the sub-distributor shall perform a "Debit Agreement Seal/Signature Verification - Created File Information Query" transaction, and print a "Debit Agreement Seal/Signature Verification Application Details Report." After verifying the accuracy of the content, it shall deliver the report, together with the Debit Agreement, to its head office for consolidation, to be then submitted to TDCC.
    If the sub-distributor and the debit bank have reached an agreement so that the applicant customer must visit the debit bank in person to apply for seal/signature verification, then after the debit bank completes the verification procedure, the sub-distributor shall notify TDCC through electronic file transfer and print a "Debit Agreement Seal/Signature Verification Application Details Report" and check the content of the notification.
Article 38     After TDCC receives the documentation required by paragraph 1 of the preceding Article, the seal/signature verification for the customer's Debit Agreement shall be carried out in the following manner:
  1. If the debit bank is a TDCC-designated payment agent, TDCC will deliver a consolidated list of the received seal/signature verification application documentation, together with the Debit Agreement, to the debit bank for seal/signature verification. When completed, the debit bank shall notify TDCC of the verification result through electronic file transfer. TDCC will then notify the sub-distributor of the result.
  2. If the debit bank is not within the scope of the preceding subparagraph but a financial institution participating in the nationwide Bill Payment System, TDCC will deliver a consolidated list of the received seal/signature verification application documentation, together with the Debit Agreement, to the debit bank for seal/signature verification. When completed, the debit bank shall notify TDCC of the verification result through electronic file transfer via an account servicer of the nationwide Bill Payment System. TDCC will then notify the sub-distributor of the result.
Article 39     The sub-distributor may perform a "Debit Agreement Seal/Signature Verification Information Query" transaction to query for or print a "Debit Agreement Seal/Signature Verification Result Report" and check the seal/signature verification result.
Article 40     Where the debit bank discovers any discrepancy between the customer's seal/signature or debit account number on the Debit Agreement and the customer's account opening information, the seal/signature verification procedure is deemed as not completed. After receiving notification from the debit bank or the account servicer of the nationwide Bill Payment System through electronic file transfer, TDCC will notify the sub-distributor that the verification procedure is not completed. The sub-distributor shall then forward the result to the customer.
    If the customer requests a re-verification, the sub-distributor shall re-initiate the Debit Agreement seal/signature verification procedure in accordance with the requirements of Articles 35 to 37.
Article 41     To change a debit account, a customer shall submit an application to the original sub-distributor. The sub-distributor shall then re-initiate the seal/signature verification procedure for the customer's Debit Agreement in accordance with the verification requirements of Article 35. Until the verification procedure is completed for the new debit account, TDCC will debit the customer's payment from the original debit account.
Subsection 3 Online Debit Authorization
Article 41-1     When handling, through TDCC, a customer's request to initiate a debit authorization application online, a sub-distributor shall ensure that the following requirements are satisfied:
  1. Submit a completed application form to TDCC for notification, and carry out computer connection and system testing operations.
  2. The financial institution authorized by the customer to execute debit payment shall be included in a TDCC-announced list of financial institutions participating in online debit authorization operations.
  3. After reviewing and verifying the accuracy of the customer's debit authorization details, the sub-distributor shall notify TDCC of the relevant information, and instruct the customer to submit an online debit authorization application following the procedure specified on the TDCC-designated webpage and in accordance with the financial institution requirement of the preceding Article.
    The financial institution shall notify TDCC of the result of the online debit authorization, to be then forwarded by TDCC to the sub-distributor, and then by the sub-distributor to the customer.
    TDCC will separately announce information on the financial institutions described in paragraph 1 and any change thereto.
Article 41-2     If the sub-distributor has reached agreement with the financial institution that the sub-distributor itself will handle the online debit authorization application operations for the customer, it may proceed to do so only after applying to TDCC and obtaining its consent by submitting to TDCC in a written letter the relevant documents including the particulars of the debit authorization agreements between the customer and the sub-distributor and between them and the financial institution; the same shall apply in the event of any change to the particulars of those agreements.
    After the sub-distributor completes the online debit authorization operations for the customer with the financial institution as referred to in the preceding paragraph, the sub-distributor shall notify TDCC through electronic file transfer and print a "Debit Agreement Seal/Signature Verification Application Details Report" and check the content of the notification.
Article 41-3     Article 39 shall apply mutatis mutandis when a sub-distributor processes a customer's request to initiate a debit authorization application online.
Article 41-4     To change a debit account, a customer shall submit an application to the original sub-distributor. The sub-distributor shall then re-initiate the debit authorization procedure in accordance with the requirements of Article 41-1 or Article 41-2. Until the debit authorization procedure is completed for the new debit account, TDCC will debit the customer's payment from the original debit account.
Subsection 4 Single Debit Subscription
Article 42     When receiving a customer's application for a single subscription of an offshore fund by debit ("single debit subscription"), a sub-distributor shall initially verify that the customer has completed the debit authorization procedure. It shall then review and verify the accuracy of the customer's subscription details, and, by 2 p.m., perform an "Offshore Fund Single Subscription" transaction (payment type: debit) to notify TDCC of the subscription details including the customer account number, the fund name, the debit amount of the single subscription, and the interest/proceeds distribution method.
    The sub-distributor shall notify the customer to deposit, by 2 p.m., the subscription payment (including the subscription fee) into the customer's cash account at the debit bank.
Article 43     The sub-distributor may perform an "Offshore Fund Subscription Details Query" transaction to query for or print an "Offshore Fund Subscription Details Report" and check the customer's relevant subscription details and the debit status of the subscription payment. If any irregularity occurs, the sub-distributor shall notify the customer to handle the matter.
Article 44     When the sub-distributor checks the customer's subscription details and discovers any discrepancy, it shall, by 2 p.m., perform an "Offshore Fund Single Subscription Details Maintenance" transaction and cancel that subscription transaction after review by its supervisory personnel. It shall then re-input the verified correct subscription details following the single debit subscription procedure set out in Article 42.
Article 45     By 2:30 p.m. on the same day, TDCC will, based on the subscription details for which the sub-distributor's customer has completed the debit authorization procedure, produce a debit detail report and notify the debit bank to debit the payment.
Article 46     After receiving the notification from TDCC, the debit bank shall debit the customer's subscription payment, and, by 3 p.m. on the same day, notify TDCC of the debit result. If the payment cannot be debited, TDCC will cancel the subscription details.
Article 47     (Deleted)
Article 48     (Deleted)
Article 49     (Deleted)
Article 50     (Deleted)
Article 51     (Deleted)
Article 52     (Deleted)
Article 53     (Deleted)
Article 54     (Deleted)
Article 54-1     (Deleted)
Subsection 5 Regular Savings Plan Subscription
Article 54-2     When receiving a customer's application for subscription of an offshore fund through a regular savings plan ("regular savings plan subscription," or "RSP subscription"), a sub-distributor shall first verify that the fund is a front-end load fund and is available for RSP subscription transactions. It shall then review and verify the accuracy of the customer's subscription details, and, by 5 p.m. on the business day before the RSP debit date, the sub-distributor shall notify TDCC of the subscription debit details by uploading an FTP file in TDCC's FTP file format.
    When work is cancelled in Taipei City on the business day before the debit date, the sub-distributor may postpone notifying TDCC of the customer's subscription debit details until no later than by 9:30 a.m. of the next business day.
Article 54-3     After completing the procedure for uploading of the customer's subscription debit details, the sub-distributor may perform an "Offshore Fund Subscription Details Query" transaction to query for or print an "Offshore Fund Subscription Details Report" and check the customer's subscription debit details.
Article 54-4     When the sub-distributor checks the customer's subscription debit details and discovers any discrepancy, it shall, by 5 p.m. on the business day before the debit date, after review by its supervisory personnel, cancel that transaction by uploading an FTP file. It shall then re-upload the verified correct subscription debit details following the procedure set out in Article 54-2.
Article 54-5     By 5:30 p.m. on the business day before the designated debit date, TDCC will, based on the subscription debit details as notified by the sub-distributor, produce a debit detail report and notify the debit bank to execute the debit payments in batch.
Article 54-6     After executing the debit payments according to the information as notified by TDCC, the debit bank shall, by 10 a.m. on the designated debit date, notify TDCC of the debit results.
Article 54-7     A sub-distributor may perform an "Offshore Fund Debit Information Query" transaction to query for or print an "Offshore Fund Subscription Debit Details Report" and check a customer's RSP subscription debit details.
Subsection 6 Summary Information Inquiries and Foreign Exchange Settlement
Article 55     A sub-distributor may perform an "Offshore Fund Subscription Details Query" transaction to query for or print an "Offshore Fund Subscription Summary Report" and check the summarized information of its customers' subscription transactions on the given day.
Article 56     A master agent may perform an "Offshore Fund Sub-Distributor Subscription Summary Information Query" transaction to query for or print an "Offshore Fund Sub-Distributor Subscription Details Report" and check the offshore fund subscription details for a sub-distributor, or query for or print an "Offshore Fund Sub-Distributor Subscription Summary Report" and check the summarized subscription details for an offshore fund represented by it.
Article 57     A master agent may perform an "Offshore Fund Sub-Distributor Regular Savings Plan Subscription Summary Information Query" transaction to query for or print an "Offshore Fund Sub-Distributor Regular Savings Plan Subscription Summary Report" and check the summarized RSP subscription details for an offshore fund represented by it.
Article 58     For the subscription payments in new Taiwan dollar for which the comparison procedure is completed, TDCC will, after 3 p.m. on a given subscription date or on a designated debit date, negotiate with its designated major payment bank a separate single exchange rate for each foreign currency and execute foreign exchange settlements accordingly.
Article 59     A sub-distributor may perform an "Offshore Fund Subscription Details Query" or an "Offshore Fund Regular Savings Plan Subscription Details Query" transaction to query for or print an "Offshore Fund Single Subscription Details Report" or an "Offshore Fund Regular Savings Plan Subscription Details Report" and check the exchange rates and the subscription amounts in the foreign currencies after exchange from the original subscription amounts in new Taiwan dollars.
Section 2 Placement of Subscription Orders and Remittance of Payments
Article 60     For the subscription details for which TDCC has completed the comparison and foreign exchange settlement procedures, if the fund involved is a front-end load fund, TDCC will consolidate the subscription details based on 1 sub-distributor subscribing to 1 fund and according to the interest/proceeds distribution method, and provide the information to the master agent to carry out the subscription operations with the offshore fund institution. If the fund involved is a back-end load fund, TDCC will not consolidate the subscription details, but will instead provide individual customers' account numbers and subscription details to the master agent to carry out the subscription operations with the offshore fund institution.
Article 61     The master agent shall, after 4 p.m. on the same day, perform an "Offshore Fund Order Information Query" transaction, or otherwise download an FTP file, to query for or print an "Offshore Funds Consolidated Order Form" consolidated based on sub-distributor, and, after verifying the accuracy of the subscription details, carry out the subscription operations with the offshore fund institution accordingly.
Article 62     After carrying out the subscription operations with the offshore fund institution, the master agent shall, by 7 p.m., perform an "Offshore Fund Order Reply" transaction to notify TDCC.
Article 63     After receiving the notification from the master agent through the "Offshore Fund Order Reply" transaction, TDCC will remit on the next business day, using remittance information based on offshore fund institution or based on sub-distributor, the subscription payments payable to the offshore fund institution into its dedicated cash account. The remittance information is as follows:
  1. Based on offshore fund institution:
    1. Remitter: TAIWAN DEPOSITORY & CLEARING CORPORATION
    2. Remarks: Consolidated Subscription Order Number (TDCC-+[Offshore Fund Institution code]+[Subscription Date])
  2. Based on sub-distributor:
    1. Remitter: TAIWAN DEPOSITORY & CLEARING CORPORATION
    2. Remarks: Consolidated Subscription Order Number ([Sub-Distributor code]+[Offshore Fund Institution code]+[Subscription Date]) and English Name of Sub-Distributor
Section 3 Subscription Transaction Confirmation and Distribution of Units
Article 64     When receiving any transaction confirmation from an offshore fund institution, a master agent shall, by 3 p.m., perform an "Offshore Fund Subscription Transaction Confirmation" transaction, or otherwise upload an FTP file, to notify TDCC of the transaction confirmation including the number of subscribed units and the fund net asset value (NAV). The master agent may perform an "Offshore Fund Subscription Transaction Confirmation Query" transaction to query for or print an "Offshore Fund Single Subscription Transaction Confirmation Query Table" and check the relevant information.
Article 65     Based on whether the transaction confirmation from the master agent is received by or after 12 noon, TDCC will distribute the subscribed units in 2 batches by 2 p.m. and by 5 p.m. The customers' numbers of subscribed units will be calculated according to their subscription amount ratios and rounded to the number of decimal places of units as provided by the offshore fund institution. Any remaining fractional units will be distributed in descending order based on the customers' numbers of units that are dropped during rounding off; if multiple customers are equally entitled, distribution will be made randomly.
Article 66     For a transaction confirmation as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m., perform an "Offshore Fund Subscribed Units Distribution Information Query" transaction to query for or print an "Offshore Fund Subscribed Units Distribution Report" and check the distribution information for the subscribed units in the subscription transactions. For a transaction confirmation as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the distribution information for the subscribed units in the subscription transactions.
Chapter 5 Redemption
Section 1 Redemption Transaction Information Inputting
Article 67     When receiving a customer's application for redemption of an offshore fund, a sub-distributor shall initially review and verify the accuracy of the customer's application details. It shall then, by 3 p.m. on the same day, perform an "Offshore Fund Redemption" transaction, or otherwise upload an FTP file, to notify TDCC of the relevant information including the customer account number, the name of the fund to be redeemed, and the number of units to be redeemed. The sub-distributor may print an "Offshore Fund Transaction Application Details" report for notification to the customer that the redemption application is completed. If the fund to be redeemed by the customer is a back-end load fund, the redemption will be processed based on the first-in-first-out (FIFO) method.
    If the customer described in the preceding paragraph instructs to pay the redemption fee by debit, the sub-distributor shall first obtain written consent from the customer and verify that the customer has completed the debit authorization procedure. It shall then review and verify the accuracy of the customer's application details, and, by 2 p.m. on the same day, perform the transaction under the preceding paragraph to notify TDCC of the relevant redemption information including the debit payment of the redemption fee. It shall also notify the customer to deposit, by 2 p.m., the amount of the redemption fee into the customer's cash account at the debit bank.
Article 67-1     Where a customer of a sub-distributor applies for redemption of an offshore fund and instructs to pay the redemption fee by debit, if the customer has completed the authorization procedure for the debit payment, TDCC will, based on the relevant information, and by 2:30 p.m. on the same day, produce a debit detail report and notify the debit bank to debit the payment.
    After debiting the customer's payment for the redemption fee following the notification by TDCC, the debit bank shall, by 3 p.m. on the same day, notify TDCC of the debit result. If the payment cannot be debited, TDCC will immediately cancel the redemption transaction.
Article 68     After completing the redemption application procedure for the customer, the sub-distributor may perform an "Offshore Fund Redemption Information Query" transaction to query for or print an "Offshore Fund Redemption Details Report" and check the customer's relevant redemption information.
Article 69     When the sub-distributor checks the customer's redemption information and discovers any discrepancy, it shall, by 3 p.m. on the same day, perform an "Offshore Fund Redemption Information Maintenance" transaction and cancel that redemption transaction after review by its supervisory personnel. It shall then re-input the verified correct redemption information following the procedure set out in Article 67.
    When the sub-distributor checks the customer's redemption information and discovers any discrepancy that involves the debit payment for the redemption fee, the operation described in the preceding paragraph shall be completed by 2 p.m.
Article 70     After completing the redemption application procedure for its customers, a sub-distributor may perform an "Offshore Fund Redemption Information Query" transaction to query for or print an "Offshore Fund Redemption Summary Report" and check the summarized information of its customers' redemption transactions on the given day.
Article 71     A master agent may perform an "Offshore Fund Sub-Distributor Redemption Summary Information Query" transaction to query for or print an "Offshore Fund Sub-Distributor Redemption Details Report" and check the offshore fund redemption information for a sub-distributor, or query for or print an "Offshore Fund Sub-Distributor Redemption Summary Report" and check the summarized redemption information for an offshore fund represented by it.
Section 2 Placement of Redemption Orders
Article 72     For the redemption transaction information that involves a front-end load fund, TDCC will consolidate the redemption information based on 1 sub-distributor subscribing to 1 fund and according to the interest/proceeds distribution method, and provide the information to the master agent to place redemption orders with the offshore fund institution. If the fund involved is a back-end load fund, TDCC will not consolidate the redemption information, but will instead provide individual customers' account numbers and subscription details to the master agent to place redemption orders with the offshore fund institution.
Article 73     The master agent shall, after 4 p.m. on the same day, perform an "Offshore Fund Order Information Query" transaction, or otherwise download an FTP file, to query for or print an "Offshore Funds Consolidated Order Form" consolidated based on sub-distributor, and, after verifying the accuracy of the redemption information, place redemption orders with the offshore fund institution accordingly.
Section 3 Redemption Transaction Confirmation and Pre-Distribution
Article 74     When receiving any redemption transaction confirmation from an offshore fund institution, a master agent shall, by 3 p.m., perform an "Offshore Fund Redemption Transaction Confirmation" transaction, or otherwise upload an FTP file, to notify TDCC of the transaction confirmation including the redemption NAV, the number of redeemed units, the redemption-related fees, and the net redemption payment. The master agent may perform an "Offshore Fund Redemption Transaction Confirmation Query" transaction to query for or print an "Offshore Fund Redemption Transaction Confirmation Query Table" and check the relevant information.
Article 75     Based on whether the transaction confirmation from the master agent is received by or after 12 noon, TDCC will pre-distribute the redemption amounts in 2 batches by 2 p.m. and by 5 p.m., before deducting the remittance charge and other necessary fees.
Article 76     For a transaction confirmation as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m. on the given day, perform an "Offshore Fund Redemption Payment Pre-Distribution Query" transaction to query for or print an "Offshore Fund Redemption Payment Pre-Distribution Report (Foreign Currency)" and check the pre-distribution information for the redemption payments. For the transaction confirmation as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the pre-distribution information for the redemption payments.
Section 4 Receipt of Remittance, Foreign Exchange Settlement, and Distribution with Respect to Redemption Payments
Article 77     An offshore fund institution shall remit redemption payments to a redemption account according to the redemption account information filed by a sub-distributor at account opening and based on offshore fund institution or based on sub-distributor. The received redemption payment amounts shall be the same as the net redemption payment amounts, and if a received payment amount is insufficient, the offshore fund institution shall immediately cover the insufficiency after notification by TDCC through the master agent.
Article 78     If the remitted redemption payments are received by 2 p.m. on the same day, and a comparison shows that the received redemption payment amounts are the same as the net redemption payment amounts receivable by TDCC, then TDCC will negotiate a single exchange rate with its designated major payment bank and execute foreign exchange settlement accordingly. If such payments are received after 2 p.m. on the same day, TDCC will, on the next business day after comparison and accuracy verification, negotiate a single exchange rate and execute foreign exchange settlement accordingly.
Article 79     After the completion of foreign exchange settlement, TDCC will produce an "Offshore Fund Redemption Payment Distribution Report (New Taiwan Dollar/Foreign Currency)." A sub-distributor may perform an "Offshore Fund Redemption Payment Distribution Query" transaction to query for or print an "Offshore Fund Redemption Payment Distribution Report" and check the distribution information for the redemption payments after foreign exchange settlement. The redemption payment distribution amounts will be rounded to dollar/yen for the currencies of Taiwan and Japan, and to cents or their equivalents for other currencies.
Section 5 Remittance of Payments
Article 80     After the completion of foreign exchange settlement for redemption payments, TDCC will notify its designated payment agent to remit the redemption payments, after deducting the remittance charge, into the customers' redemption accounts filed at account opening. A payment will be remitted to a customer only if its amount is sufficient to cover the remittance charge; otherwise, it will be remitted together with 1 or more subsequent payments when the accumulative amount is sufficient to cover the remittance charge.
Chapter 6 Switching
Section 1 Switch Transaction Information Inputting
Article 81     When receiving a customer's application for switching of an offshore fund, a sub-distributor shall initially review and verify the accuracy of the customer's application details. It shall then, by 3 p.m. on the same day, perform an "Offshore Fund Switch" transaction, or otherwise upload an FTP file, to notify TDCC of the relevant information including the customer account number, the name of the fund to be switched out, the name of the fund to be switched into, and the number of units to be switched. The sub-distributor may print an "Offshore Fund Transaction Application Details" report for notification to the customer that the switch application is completed.
Article 82     After completing the application procedure for the customer, the sub-distributor may perform an "Offshore Fund Switch Information Query" transaction to query for or print an "Offshore Fund Switch Details Report" and check the customer's relevant switch information.
Article 83     When the sub-distributor checks the customer's switch information and discovers any discrepancy, it shall, by 3 p.m., perform an "Offshore Fund Switch Information Maintenance" transaction and cancel that switch transaction after review by its supervisory personnel. It shall then re-input the verified correct switch information following the procedure set out in Article 81.
Article 84     A sub-distributor may perform an "Offshore Fund Switch Information Query" transaction to query for or print an "Offshore Fund Switch Summary Report" and check the summarized information of its customers' switch transactions on the given day.
Article 85     A master agent may perform an "Offshore Fund Sub-Distributor Switch Summary Information Query" transaction to query for or print an "Offshore Fund Sub-Distributor Switch Details Report" and check the offshore fund switch information for a sub-distributor, or query for or print an "Offshore Fund Sub-Distributor Switch Summary Report" and check the [summarized] switch information for an offshore fund represented by it.
Article 85-1     Article 67, paragraph 2, Article 67-1, and Article 69, paragraph 2 shall apply mutatis mutandis when a customer applying for switching also instructs to pay the switch fee by debit.
Section 2 Placement of Switch Orders
Article 86     For switch transaction information that involves a front-end load fund, TDCC will consolidate the switch information based on 1 sub-distributor subscribing to 1 fund and according to the interest/proceeds distribution method, and provide the information to the master agent to place switch orders with the offshore fund institution. If the fund involved is a back-end load fund, TDCC will not consolidate the switch information, but will instead provide individual customers' account numbers and subscription details to the master agent to place switch orders with the offshore fund institution.
Article 87     The master agent shall, after 4 p.m. on the same day, perform an "Offshore Fund Order Information Query" transaction, or otherwise download an FTP file, to query for or print an "Offshore Funds Consolidated Order Form" consolidated based on sub-distributor, and, after verifying the accuracy of the switch information, place switch orders with the offshore fund institution accordingly.
Section 3 Switch Transaction Confirmation and Distribution
Article 88     When receiving any switch transaction confirmation from an offshore fund institution, a master agent shall, by 3 p.m., perform an "Offshore Fund Switch Transaction Confirmation" transaction, or otherwise upload an FTP file, to notify TDCC of the transaction confirmation including the switch-out and switch-in funds, the number of distributed units, and the NAVs of the funds. The master agent may perform an "Offshore Fund Switch Transaction Confirmation Query" transaction to query for or print an "Offshore Fund Switch Transaction Confirmation Query Table" and check the relevant information.
Article 89     Based on whether the transaction confirmation from the master agent is received by or after 12 noon, TDCC will distribute the units of the switch-in fund in 2 batches by 2 p.m. and by 5 p.m., calculated according to the ratios of the switched units requested by customers and rounded to the number of decimal places of units as provided by the offshore fund institution. Any remaining fractional units will be distributed in descending order based on the customers' numbers of units that are dropped during rounding off; if multiple customers are equally entitled, distribution will be made randomly.
Article 90     For a transaction confirmation as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m. on the given day, perform an "Offshore Fund Switch-in Units Distribution Information Query" transaction to query for or print an "Offshore Fund Switch-in Units Distribution Report" and check the distribution information for the switch-in units. For a transaction confirmation as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the distribution information for the switch-in units.
Section 1 Transaction Information Inputting
Article 90-1     When receiving a customer's application for redemption of an offshore fund to switch, through a subsequent subscription, to a fund of another offshore fund institution ("redemption for switch"), a sub-distributor shall initially review and verify the accuracy of the customer's application details. It shall then, by 3 p.m. on the same day, perform a "Redemption-for-Switch Application" transaction, or otherwise upload an FTP file, to notify TDCC of the relevant information including the customer account number, the name of the fund to be redeemed, the number of units to be redeemed, the offshore fund institution after the switch, the name of the fund after the switch, the subsequent subscription fee, and the interest/proceeds distribution method. The sub-distributor may print an "Offshore Fund Transaction Application Details" report for notification to the customer that the redemption-for-switch application is completed. If the fund to be redeemed by the customer is a back-end load fund, the redemption will be processed based on the FIFO method.
Article 90-2     After completing the redemption-for-switch application procedure for the customer, the sub-distributor may perform a "Redemption-for-Switch Information Query" transaction to query for or print a "Redemption-for-Switch Transaction Information Query Table" and check the customer's relevant redemption-for-switch information.
Article 90-3     When the sub-distributor checks the customer's redemption-for-switch application information and discovers any discrepancy, it shall, by 3 p.m. on the same day, perform a "Redemption-for-Switch Information Maintenance" transaction and cancel that redemption-for-switch transaction after review by its supervisory personnel. It shall then re-input the verified correct information following the procedure set out in Article 90-1. If the customer instructs to cancel the information of the subsequent subscription after the next business day following the application date, the sub-distributor may, before TDCC completes the comparison procedure for the redemption payment, cancel that subsequent subscription transaction after review by its supervisory personnel.
Article 90-4     After completing the information maintenance procedure for the customer's redemption-for-switch application, the sub-distributor may perform an "Offshore Fund Redemption-for-Switch Information Change Query" transaction to query for or print an "Offshore Fund Redemption-for-Switch Information Change Report" and check the change in the customer's redemption-for-switch information on the given day.
Section 2 Placement of Redemption Orders, Transaction Confirmation, and Payments Processing
Article 90-5     The placement of redemption orders, transaction confirmation, pre-distribution, receipt of remittance, foreign exchange settlement, and distribution with respect to redemption-for-switch transactions shall be subject to the relevant procedures set out in Articles 72 to 79.
Article 90-6     After receiving a remitted redemption payment and completing the comparison procedure, TDCC will, on next business day, entirely convert the redemption payment into the subsequent subscription amount after deducting the subscription fee.
Section 3 Placement of Subsequent Subscription Orders, Transaction Confirmation, and Distribution of Units
Article 90-7     The placement of subsequent subscription orders, subsequent subscription transaction confirmation, and distribution of units with respect to redemption-for-switch transactions shall be subject to the relevant procedures set out in Articles 60 to 66.
Chapter 6-1 Redemption for Switching Between Funds of Different Offshore Fund institutions
Section 1 Interest/Proceeds Distribution Information Notification
Article 91     By 5 business days before the record date for an offshore fund's distribution of interest/proceeds, a master agent shall perform an "Offshore Fund Interest/Proceeds Distribution Record Date and Distribution Ratio Information Notification" transaction to notify TDCC of the relevant information including the offshore fund's most recent record date for interest/proceeds distribution, the estimated distribution date for the interest/proceeds payments, and the last domestic trading date for units qualified for the interest/proceeds distribution.
Article 92     When receiving information notification from the offshore fund institution on the interest/proceeds distribution ratio, the master agent shall perform an "Offshore Fund Interest/Proceeds Distribution Record Date and Distribution Ratio Information Notification" transaction to notify TDCC of the offshore fund's interest/proceeds distribution ratio information.
Article 93     A sub-distributor may perform an "Offshore Fund Interest/Proceeds Distribution Record Date and Distribution Ratio Information Query" transaction to query for or print an "Offshore Fund Interest/Proceeds Distribution Record Date and Distribution Ratio Information Query Table" and check the relevant interest/proceeds distribution information.
Section 2 Dividends
Subsection 1 Dividend Distribution Information Notification and Pre-Distribution
Article 94     When receiving any dividend distribution information from an offshore fund institution, a master agent shall, by 3 p.m., perform an "Offshore Fund Dividend Distribution Information Notification" transaction, or otherwise upload an FTP file, to notify TDCC of the confirmation including the number of units qualified for the dividend distribution, the interest/proceeds distribution ratio, and the interest/proceeds distribution amount. The master agent may perform an "Offshore Fund Dividend Distribution Information Query" transaction to query for or print an "Offshore Fund Dividend Distribution Information Query Table" and check the relevant information.
Article 95     Based on whether the dividend distribution information from the master agent is received by or after 12 noon, TDCC will pre-distribute the dividend payments in 2 batches by 2 p.m. and by 5 p.m., before deducting the remittance charge and other necessary fees.
Article 96     For a transaction confirmation as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m. on the given day, perform an "Offshore Fund Dividend Payment Pre-Distribution Query" transaction to query for or print an "Offshore Fund Dividend Payment Pre-Distribution Report (Foreign Currency)" and check the pre-distribution information for the dividend payments. For the transaction confirmation as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the pre-distribution information for the dividend payments.
Subsection 2 Receipt of Remittance, Foreign Exchange Settlement, and Distribution with Respect to Dividend Payments
Article 97     An offshore fund institution shall remit dividend payments to a redemption account according to the redemption account information filed by a sub-distributor at account opening and based on offshore fund institution or based on sub-distributor. The received dividend payment amounts shall be the same as the interest/proceeds distribution amounts, and if a received payment amount is insufficient, the offshore fund institution shall immediately cover the insufficiency after notification by TDCC through the master agent.
Article 98     If the remitted dividend payments are received by 2 p.m. on the same day, and a comparison shows that the received dividend payment amounts are the same as the interest/proceeds distribution amounts receivable by TDCC, then TDCC will negotiate a single exchange rate with its designated major payment bank and execute foreign exchange settlement accordingly. If such payments are received after 2 p.m. on the same day, TDCC will, on the next business day after comparison and accuracy verification, negotiate a single exchange rate and execute foreign exchange settlement accordingly.
Article 99     After the completion of foreign exchange settlement, TDCC will produce an "Offshore Fund Dividend Payment Distribution Report (New Taiwan Dollar/Foreign Currency)." A sub-distributor may perform an "Offshore Fund Dividend Payment Distribution Information Query" transaction to query for or print an "Offshore Fund Dividend Payment Distribution Report (New Taiwan Dollar/Foreign Currency)" and check the distribution information for the dividend payments after foreign exchange settlement. The dividend payment will be rounded to dollar/yen for the currencies of Taiwan and Japan, and to cents or their equivalents for other currencies.
Subsection 3 Remittance of Dividend Payments
Article 100     After the completion of foreign exchange settlement for dividend payments, TDCC will notify its designated payment agent to remit the dividend payments, after deducting the remittance charge, into the customers' redemption accounts filed at account opening. A payment will be remitted to a customer only if its amount is sufficient to cover the remittance charge; otherwise, it will be remitted together with 1 or more subsequent payments when the accumulative amount is sufficient to cover the remittance charge.
Section 3 Reinvestment
Article 101     When receiving any interest/proceeds reinvestment information from an offshore fund institution, a master agent shall, by 3 p.m., perform an "Offshore Fund Interest/Proceeds Reinvestment Information Notification" transaction, or otherwise upload an FTP file, to notify TDCC of the confirmation including the number of units qualified for the distribution of interest/proceeds reinvestment, the interest/proceeds distribution ratio, the interest/proceeds distribution amount, the reinvestment NAV date, the reinvestment NAV, and the number of units distributed for the interest/proceeds reinvestment. The master agent may perform an "Offshore Fund Interest/Proceeds Reinvestment Information Notification Query" transaction to query for or print an "Offshore Fund Interest/Proceeds Reinvestment Information Notification Query Table" and check the relevant information.
Article 102     Based on whether the interest/proceeds reinvestment information from the master agent is received by or after 12 noon, TDCC will distribute the interest/proceeds reinvestment units in 2 batches by 2 p.m. and by 5 p.m., calculated according to the customers' ratios of units qualified for the interest/proceeds reinvestment and rounded to the number of decimal places of units as provided by the offshore fund institution. Any remaining fractional units will be distributed in descending order based on the customers' numbers of units that are dropped during rounding off; if multiple customers are equally entitled, distribution will be made randomly.
Article 103     For a transaction confirmation as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m. on the given day, perform an "Offshore Fund Interest/Proceeds Reinvestment Units Distribution Information Query" transaction to query for or print an "Offshore Fund Interest/Proceeds Reinvestment Distribution Report" and check the distribution information for the interest/proceeds reinvestment units. For a transaction confirmation as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the distribution information for the interest/proceeds reinvestment units.
Chapter 7 Interest/Proceeds Distribution
Section 1 Information Notification on Cancellation of Offering or Suspension of Offering and Sale
Article 104     When receiving any information notification from an offshore fund institution on a cancellation (non-execution) of fund offering or a suspension of fund offering and sale, a master agent shall perform an "Offshore Fund Status Setting" transaction to notify TDCC of the relevant information.
Article 105     A sub-distributor may perform an "Offshore Fund Status Setting Query" transaction to query about relevant information on the cancellation of fund offering or suspension of fund offering and sale.
Section 2 Payments Processing and Distribution
Article 106     When receiving any information notification from an offshore fund institution on any refund for cancellation of fund offering, a master agent shall perform an "Offshore Fund Offering Cancellation Refund Notification" transaction to notify TDCC of the relevant information including the refund amount and the refund date.
Article 107     An offshore fund institution shall remit refund payments for cancellation of fund offering to a redemption account according to the redemption account information filed by a sub-distributor at account opening.
Article 108     When receiving the remitted refund payments for cancellation of fund offering, TDCC will negotiate a single exchange rate with its designated major payment bank, and then execute foreign exchange settlement and distribute the refund payments.
Article 109     A sub-distributor may perform an "Offshore Fund Offering Cancellation Refund Payment Distribution Query" transaction to query for or print an "Offshore Fund Offering Cancellation Refund Payment Distribution Report" and check the distribution information for the refund payments for cancellation of fund offering after foreign exchange settlement.
Article 110   &nbp; After completing foreign exchange settlement for the refund payments for cancellation of fund offering, TDCC will notify its designated payment agent to remit the refund payments, after deducting the remittance charge, into the customers' redemption accounts filed at account opening.
Chapter 8 Cancellation of Fund Offering or Suspension of Fund Offering and Sale
Section 1 Liquidation
Subsection 1 Liquidation Information Notification
Article 111     Before the record date for an offshore fund's liquidation, a master agent shall perform an "Offshore Fund Liquidation Record Date and Distribution Ratio Information Notification" transaction to notify TDCC of the relevant information including the offshore fund's code, the liquidation record date, and the last domestic trading date.
    When receiving information notification from the offshore fund institution on the liquidation distribution ratio, the master agent shall perform an "Offshore Fund Liquidation Record Date and Distribution Ratio Information Notification" transaction to notify TDCC of the offshore fund's liquidation distribution ratio information.
Article 112     A sub-distributor may perform an "Offshore Fund Liquidation Record Date and Distribution Ratio Information Query" transaction to query for or print an "Offshore Fund Liquidation Record Date and Distribution Ratio Information Query Table."
Subsection 2 Liquidation Distribution Information Notification and Pre-Distribution
Article 113     When receiving any liquidation distribution information from an offshore fund institution, a master agent shall, by 3 p.m., perform an "Offshore Fund Liquidation Distribution Information Notification" transaction, or otherwise upload an FTP file, to notify TDCC of the confirmation including the number of units qualified for the liquidation distribution, the liquidation distribution ratio, and the liquidation distribution amount. The master agent may perform an "Offshore Fund Liquidation Distribution Information Query" transaction to query for or print an "Offshore Fund Liquidation Distribution Information Query Table" and check the relevant information.
Article 114     Based on whether the liquidation distribution information from the master agent is received by or after 12 noon, TDCC will pre-distribute the liquidation payments in 2 batches by 2 p.m. and by 5 p.m., before deducting the remittance charge and other necessary fees.
Article 115     For the liquidation information as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m. on the given day, perform an "Offshore Fund Liquidation Payment Pre-Distribution Query" transaction to query for or print an "Offshore Fund Liquidation Payment Pre-Distribution Report (Foreign Currency)" and check the pre-distribution information for the liquidation payments. For the liquidation information as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the pre-distribution information for the liquidation payments.
Subsection 3 Receipt of Remittance, Foreign Exchange Settlement, and Distribution with Respect to Liquidation Payments
Article 116     An offshore fund institution shall remit liquidation payments to a redemption account according to the redemption account information filed by a sub-distributor at account opening. The received liquidation payment amounts shall be the same as the liquidation distribution amounts, and if a received payment amount is insufficient, the offshore fund institution shall immediately cover the insufficiency after notification by TDCC through the master agent.
Article 117     If the remitted liquidation payments are received by 2 p.m. on the same day, and a comparison shows that the received liquidation payment amounts are the same as the liquidation distribution amounts receivable by TDCC, then TDCC will negotiate a single exchange rate with its designated major payment bank and execute foreign exchange settlement accordingly. If such payments are received after 2 p.m. on the same day, TDCC will, on the next business day after comparison and accuracy verification, negotiate a single exchange rate and execute foreign exchange settlement accordingly.
Article 118     After the completion of foreign exchange settlement, TDCC will produce an "Offshore Fund Liquidation Payment Distribution Report (New Taiwan Dollar/Foreign Currency)." A sub-distributor may perform an "Offshore Fund Liquidation Payment Distribution Query" transaction to query for or print an "Offshore Fund Liquidation Payment Distribution Report" and check the distribution information for the liquidation payments after foreign exchange settlement. The liquidation payment distribution amounts will be rounded to dollar/yen for the currencies of Taiwan and Japan, and to cents or their equivalents for other currencies.
Subsection 4 Remittance of Liquidation Payments
Article 119     After completing the foreign exchange settlement for liquidation payments, TDCC will notify its designated payment agent to remit the liquidation payments, after deducting the remittance charge, into the customers' redemption accounts filed at account opening. A payment will be remitted to a customer only if its amount is sufficient to cover the remittance charge; otherwise, it will be remitted together with 1 or more subsequent payments when the accumulative amount is sufficient to cover the remittance charge.
Section 2 Merger
Subsection 1 Merger Information Notification
Article 120     Before the record date for an offshore fund's merger, a master agent shall perform an "Offshore Fund Merger Record Date and Conversion Rate Information Notification" transaction to notify TDCC of the relevant information including the merging fund's code, the continuing fund's code, the merger record date, the last domestic trading date for the merging fund, and the merger conversion rate.
    When receiving information notification from the offshore fund institution on the merger conversion rate, the master agent shall perform an "Offshore Fund Merger Record Date and Conversion Rate Information Notification" transaction to notify TDCC of the conversion rate information for the offshore fund merger.
Article 121     A sub-distributor may perform an "Offshore Fund Merger Record Date and Conversion Rate Information Query" transaction to query for or print an "Offshore Fund Merger Record Date Information Query Table."
Subsection 2 Merger Units Notification and Distribution
Article 122     When receiving any information notification from an offshore fund institution on the number of units to be received in a fund merger ("merger units"), a master agent shall, by 3 p.m., perform an "Offshore Fund Merger Units Information Notification" transaction, or otherwise upload an FTP file, to notify TDCC of the relevant information including the number of units qualified for the merger, the ratio of the merger units, and the number of the merger units. The master agent may perform an "Offshore Fund Merger Units Information Query" transaction to query for or print an "Offshore Fund Merger Units Information Query Table" and check the relevant information.
Article 123     Based on whether the merger units information from the master agent is received by or after 12 noon, TDCC will distribute the fund merger units in 2 batches by 2 p.m. and by 5 p.m., calculated according to the customers' ratios of units qualified for the merger and rounded to the number of decimal places of units as provided by the offshore fund institution. Any remaining fractional units will be distributed in descending order based on the customers' numbers of units that are dropped during rounding off; if multiple customers are equally entitled, distribution will be made randomly.
Article 124     For the merger units information as notified by the master agent by 12 noon, a sub-distributor may, after 2 p.m. on the given day, perform an "Offshore Fund Merger Units Distribution Information Query" transaction to query for or print an "Offshore Fund Merger Units Distribution Report" and check the distribution information for the merger units. For the merger units information as notified by the master agent after 12 noon, the sub-distributor may, after 5 p.m., perform the above transaction and check the distribution information for the merger units.
Chapter 9 Liquidation and Merger
Section 1 Change or Termination of Master Agent
Article 125     When an offshore fund's master agent is changed or its agency terminated, TDCC will, after the event is duly announced, proceed immediately to disallow the master agent and its sub-distributor(s) from accepting customers' subscription of the offshore fund starting from the effective date of the change or termination of agency.
Article 126     After the master agent is changed or its agency terminated, until another offshore fund master agent takes over the business, the original master agent and its sub-distributor(s) may still accept and handle customers' applications for redemption, switching, or other relevant matters through the Trading Platform in accordance with the aforesaid procedures for redemption, switching, or other relevant operations.
Article 127     After the master agent is changed, the new master agent shall submit an application, together with a letter of approval from the Competent Authority approving of its agency relationship with the offshore fund, to TDCC for agreement-signing, connection, and other relevant matters in accordance with the procedures for operations related to connection applications set out in Chapter 2 (not required if it has already signed a master agent agreement with TDCC).
Article 128     The new master agent shall notify TDCC of relevant information including the master agent, the sub-distributor(s), the offshore fund institution, the fund, and the subscription fee split ratio(s), through basic information maintenance operations over the Trading Platform in accordance with the basic information maintenance procedures set out in Chapter 3.
Section 2 Termination of Offering and Sale Business by Sub-Distributor
Article 129     When a sub-distributor terminates its offering and sale business for an offshore fund, it shall immediately notify the master agent.
Article 130     After receiving the notification from the sub-distributor of its terminating the offering and sale business for the offshore fund, the master agent shall perform a "Sub-Distributor Maintenance" transaction to notify TDCC of the relevant information including the effective date of the termination of agency.
Article 131     After terminating its offering and sale business for the offshore fund, the sub-distributor shall still assist customers with subsequent redemption, switching, or other relevant matters related to the offshore fund until another offshore fund sub-distributor takes over the business.
Article 131-1     When terminating its offering and sale business for the offshore fund and transferring that business to another sub-distributor, the original sub-distributor shall, by 7 business days before the record date for the offshore fund transfer, notify TDCC in writing of relevant information by submitting a letter of approval from the Competent Authority and the account transfer application documentation it submits to the offshore fund institution.
    The transferee sub-distributor receiving the business transfer under the preceding paragraph shall, by 3 business days before the record date for the transfer, provide media files showing the comparison of the new with the old accounts to TDCC to carry out transfer operations for customer information.
Article 131-2     A sub-distributor's branch office transferring relevant offshore fund operations to another branch office of the sub-distributor as a result of its suspension or termination of business operations shall, by 7 business days before the record date for the suspension or termination of business operations, notify TDCC in writing by submitting a letter of approval from the Competent Authority, and, by 3 business days before that record date, provide media files showing the comparison of the new with the old accounts to TDCC to carry out adjustment or transition operations for customer information.
Chapter 10 Change of Master Agent or Sub-Distributor
Section 1 Daily Closing
Article 132     After the end of operations each day, a sub-distributor may perform an "Offshore Fund Balance Change Query" transaction to query for or print an "Offshore Fund Daily Balance Change Report" and check the summarized information of the subscription, redemption, switch, interest/proceeds distribution, or other changes on the current day for the funds it sells.
Article 133     After the end of operations each day, a master agent may perform an "Offshore Fund Balance Change Summary Query" transaction to query for or print an "Offshore Fund Daily Balance Change Summary Report" and check the summarized information of the subscription, redemption, switch, interest/proceeds distribution, or other changes on the current day for the funds represented by it.
Section 2 Customer Inventory Management
Article 134     After the next business day following TDCC's distribution of units or payment for any subscription, redemption, switching, or interest/proceeds distribution, a sub-distributor may perform an "Offshore Fund Customer Transaction Detail Query" transaction, or otherwise download an FTP file, to create an "Offshore Fund Transaction Confirmation" for delivery to its customer.
Article 135     A sub-distributor may perform an "Offshore Fund Customer Account Balance Query" transaction, or otherwise download an FTP file, to create an "Offshore Fund Reconciliation Report" for delivery to its customer.
Article 135-1     When a sub-distributor handles for a customer any procedure in connection with inheritance, gift, company merger, consolidation, or demerger, assignment of business, transfer of a customer to a sub-distributor branch, or other circumstance accepted by this Corporation, the sub-distributor shall initially review and verify the accuracy of the customer's application details. It shall then perform an "Offshore Fund Transaction Detail Adjustment Application" transaction and submit a completed Offshore Fund Transaction Detail Adjustment Application, affixed with its seal/signature on file, and other relevant evidentiary documentation to TDCC for notification.
    After reviewing and verifying the completeness of the documents submitted under the preceding paragraph, TDCC will notify the sub-distributor to perform an "Offshore Fund Transaction Detail Adjustment" transaction to adjust the transaction details.
    The sub-distributor may also perform an "Offshore Fund Transaction Detail Adjustment Query" transaction to query for or print an "Offshore Fund Transaction Detail Adjustment Report" and check the relevant information changes.
Article 135-2     A sub-distributor operating brokerage business for trading and exchanging beneficial certificates of offshore funds shall, by 5 p.m., perform a "File Information Upload" transaction, or otherwise upload an FTP file, to notify TDCC of the itemized details of customer trades and exchanges.
    After receiving the notification under the preceding paragraph, TDCC will the perform the customer transaction detail adjustment operations.
Article 135-3     After TDCC has completed the customer trade and exchange detail adjustments, the sub-distributor shall perform a "File Information Download” transaction, and check the changes in the customer trade and exchange information. If it discovers any discrepancy, it shall immediately ascertain the cause, and then re-upload the correct customer trade and exchange details following the procedure set out in the preceding article.
Section 3 Handling Fees and Operational Service Charges
Article 136     At the beginning of each month, a sub-distributor may perform a "Handling Fee Amount Query" transaction to query for or print a "Sub-Distributor Subscription Fee Reconciliation Report" or a "Sub-Distributor Redemption/Switch Fee Reconciliation Report" and check the amounts and details of its subscription fees or redemption/switch fees for the preceding month.
Article 137     At the beginning of each month, a master agent or sub-distributor may perform a "Subscription Fee Allocation Amount Query" transaction to query for or print a "Subscription Fee Allocation Report" and check the amounts and details of its subscription fee allocations for the preceding month.
Article 138     At the beginning of each month, a sub-distributor may perform an "Operational Service Charge Payable Query" transaction to query for or print an "Operational Service Charge List for Sub-Distributor" and check the amounts and details of the subscription service charges payable by it to TDCC for the preceding month.
Article 139     At the beginning of each month, TDCC will issue and deliver invoices stating the amounts of its operational service charges, together with corresponding official documents, to the relevant sub-distributors, and remit the allocated subscription fees and redemption/switch fees to the relevant cash accounts filed by the master agents or sub-distributors after deducting the operational service charges and remittance charges.
Chapter 11 Account Management
Section 1 Correction of Transaction Information by Sub-Distributors
Article 140     Applications for Correction
  1. If, by 3 p.m. on a given day, a sub-distributor intends to correct any current-day subscription details after TDCC has completed the comparison procedure for the subscription details and inward remittance information, it shall submit a completed Application for Correction of Transaction Information, affixed with its seal/signature on file, to TDCC for application.
  2. If, after 3 p.m. on a given day, a sub-distributor intends to correct any current-day redemption or switch information or any current-day subscription details that does not involve a change in payment amount, it must first obtain consent from its master agent. The sub-distributor and the master agent shall then separately submit the following documents by fax to TDCC for application by 5 p.m. on the given day, and deliver the original documents to TDCC on the next business day:
    1. The sub-distributor shall submit an Application for Correction of Transaction Information and affix its seal/signature on file.
    2. The master agent shall submit a Consent for Correction of Transaction Information, stating its consent to the sub-distributor's change of the transaction information, and affix its seal/signature on file.
Article 141     After reviewing and verifying the accuracy of the submitted documents, TDCC will immediately notify the sub-distributor to correct the transaction information.
Article 142     After receiving the notification from TDCC, the sub-distributor shall perform an "Offshore Fund Single Subscription Details Maintenance," an "Offshore Fund Redemption Information Maintenance," or an "Offshore Fund Switch Information Maintenance" transaction and cancel the original single subscription, redemption, or switch transaction after review by its supervisory personnel. It shall then re-input the verified correct single subscription, redemption, or switch information.
Article 143     After receiving notification from TDCC, the master agent shall perform an "Offshore Fund Order Information Query" transaction, or otherwise download an FTP file, to query for or print an "Offshore Funds Consolidated Order Form," and, after verifying the accuracy of the information, place subscription, redemption, or switching orders with the offshore fund institution accordingly.
Section 2 Correction of Transaction Confirmations by Master Agents
Article 144     If a master agent intends to correct any transaction confirmation after TDCC has completed the pre-distribution or distribution procedure for the units or payment(s), it must first obtain consent from its sub-distributor. The master agent and the sub-distributor shall then separately submit the following documents by fax to TDCC for application by 5 p.m. on the given day, and deliver the original documents to TDCC on the next business day:
  1. The master agent shall submit an Application for Correction of Transaction Confirmation and affix its seal/signature on file.
  2. The sub-distributor shall submit a Consent for Correction of Transaction Confirmation, stating its consent to the master agent's change of the transaction confirmation, and affix its seal/signature on file.
Article 145     After reviewing and verifying the accuracy of the submitted documents, TDCC will immediately notify the master agent to correct the transaction confirmation.
Article 146     After receiving the notification from TDCC, the master agent shall correct the transaction confirmation in the following manner:
  1. To correct any transaction confirmation input on the current day, the master agent shall perform an "Offshore Fund Subscription Transaction Confirmation," an "Offshore Fund Redemption Transaction Confirmation," an "Offshore Fund Switch Transaction Confirmation," an "Offshore Fund Dividend [Distribution] Information Notification," or an "Offshore Fund Interest/Proceeds Reinvestment Information Notification" transaction, and re-input the correct subscription, redemption, switching, or interest/proceeds distribution information.
  2. To correct any transaction confirmation not input on the current day, the master agent shall perform an "Offshore Fund Subscription Transaction Confirmation Correction," an "Offshore Fund Redemption Transaction Confirmation Correction," an "Offshore Fund Switch Transaction Confirmation Correction," an "Offshore Fund Dividend [Distribution] Information Notification," or an "Offshore Fund Interest/Proceeds Reinvestment Information Notification Correction" transaction, and correct the subscription, redemption, switching, or interest/proceeds distribution information.
Article 147     After receiving notification from TDCC, the sub-distributor shall perform inquiries in the following manner:
  1. Where the master agent has corrected a transaction confirmation input on the current day, the sub-distributor shall perform an "Offshore Fund Subscribed Units Distribution Information Query," an "Offshore Fund Redemption Payment Pre-Distribution Query," an "Offshore Fund Switch-in Units Distribution Information Query," an "Offshore Fund Dividend Payment Pre-Distribution Query," or an "Offshore Fund Interest/Proceeds Reinvestment Units Distribution Information Query" transaction to query the distribution information for the subscription, redemption, switching, or interest/proceeds distribution.
  2. Where the master agent has corrected a transaction confirmation not input on the current day, the sub-distributor shall perform an "Offshore Fund Subscription Transaction Confirmation Correction Query," an "Offshore Fund Redemption Transaction Confirmation Correction Query," an "Offshore Fund Switch Transaction Confirmation Correction Query," an "Offshore Fund Dividend Payment Pre-Distribution Query," or an "Offshore Fund Interest/Proceeds Reinvestment Information Notification Correction Query" transaction to query the distribution information for the subscription, redemption, switching, or interest/proceeds distribution after correction.
Section 3 Correction of Other Information by Sub-Distributors and Master Agents
Article 147-1     To correct or adjust a fund's basic information, number of units, NAV-related compensation, or other payment information, a master agent or sub-distributor shall submit a completed Application for Handling of Other Exceptions, affixed with its seal/signature on file, to TDCC for application.
    Where the application submitted by a master agent under the preceding paragraph involves an adjustment in the payment from or to a sub-distributor's customers, the master agent must first obtain consent from the sub-distributor. The sub-distributor shall then submit to TDCC a completed Consent for Handling of Other Exceptions, affixed with its seal/signature on file.
    A master agent or sub-distributor may submit the application form or consent form under the preceding two paragraphs by fax to TDCC for application by 5 p.m. on the given day, and deliver the original document to TDCC on the next business day.
Article 147-2     After reviewing and verifying the accuracy of the relevant documentation for the handling of other exceptions, TDCC will carry out relevant correction or adjustment/transition operations, and, when completed, notify the master agent or sub-distributor.
    After the relevant payments are received into TDCC's dedicated cash account, TDCC will, based on the relevant principle of payment distribution, remit the payments into the redemption accounts filed by the sub-distributor's customers, with the remittance charge to be borne by the master agent or sub-distributor.
    If a payment to be remitted to a customer under the preceding paragraph involves a securities firm's OSU (offshore securities unit) segregated account or its settlement account with separate customer ledger, TDCC will remit that payment into the dedicated cash account where the customer's monies are retained.
Section 4 Transaction Information Transmission and Payments Processing on the Business Day Before the Lunar New Year Holidays
Article 148     When receiving a customer's transaction application for an offshore fund, a sub-distributor shall initially review and verify the accuracy of the customer's application details. It shall then, by 1:30 p.m. on the same day, perform an "Offshore Fund Single Subscription," an "Offshore Fund Redemption," or an "Offshore Fund Switch" transaction, or otherwise upload an FTP file, to notify TDCC of the relevant transaction information. The sub-distributor may print a "Subscription Payment Remittance Notice" and an "Offshore Fund Transaction Application Details" report for notification to the customer.
    If, however, the aforesaid application is made for a single debit subscription, the sub-distributor shall, by 12 noon on the same day, perform an "Offshore Fund Single Subscription" transaction to notify TDCC of the relevant transaction information.
Article 149     Where a sub-distributor's customer applies for a single money transfer subscription, the sub-distributor shall notify the customer to remit, by 1:30 p.m. on the same day, the subscription payment (including the subscription fee) into TDCC's dedicated cash account at its designated payment agent.
    Where a sub-distributor's customer applies for a single debit subscription, the sub-distributor shall notify the customer to deposit, by 12 noon on the same day, the subscription payment (including the subscription fee) into the customer's cash account at the debit bank.
    The sub-distributor must verify that the customer's subscription payment is remitted by the customer or from the customer's account.
Article 150     By 1:30 p.m., TDCC will compare the subscription details notified by the sub-distributor with the inward remittance information as notified by its designated payment agent. The comparison procedure is completed if the received remittance is sufficient to pay the customer's subscription payment (including the subscription fee). If the customer's subscription payment is received into TDCC's dedicated cash account after 1:30 p.m., TDCC will compare the remittance with the subscription details on the next business day.
Article 151     The master agent shall, after 2 p.m. on the same day, perform an "Offshore Fund Order Information Query" transaction, or otherwise download an FTP file, to query for or print an "Offshore Funds Consolidated Order Form" consolidated based on sub-distributor, and, after verifying the accuracy of the transaction information, place orders with the offshore fund institution accordingly.
Article 152     After carrying out the subscription operations with the offshore fund institution, the master agent shall, by 2:30 p.m., perform an "Offshore Fund Order Reply" transaction to notify TDCC.
Article 153     After receiving the notification from the master agent through the "Offshore Fund Order Reply" transaction, TDCC will remit on the same day, using remittance information based on offshore fund institution or based on sub-distributor, the subscription payments payable to the offshore fund institution into its dedicated cash account.
Chapter 12 Handling of Exceptions
Article 153-1     Where TDCC is engaged by a sub-distributor to process payments on its behalf, if a subscription payment is not transferred into TDCC's dedicated cash account by the fund's order cut-off time due to a shortfall in the designated account, a disruption of information system services, a telecommunications outage, or any other force majeure event, TDCC will not process the corresponding subscription transaction. The sub-distributor is not entitled to claim damages from TDCC for any delay or loss suffered by its customer due to any of the above causes.
Article 153-2     Upon occurrence of a natural disaster, an election of public officials, or any other force majeure event, if the Taipei City announces closure of offices, TDCC may notify sub-distributors or master agents of offshore funds to adjust their timeframe for offshore fund transaction information transmission and payment operations.
Article 154     Where a master agent conducts offshore fund operations for customers agreeing to submit subscription applications to an offshore fund institution in the name of the master agent, the flowing procedures shall apply:
  1. For the procedures for its opening an account with the offshore fund institution, the procedures set out in Chapter 2, Section 3 for sub-distributors opening accounts with offshore fund institutions shall apply.
  2. For the procedures for its processing the customers' account opening applications, the procedures set out in Chapter 3, Section 2, Subsection 3 for sub-distributors' customer information maintenance shall apply.
  3. For the procedures for its subscription operations, the procedures set out in Chapter 4 for sub-distributors' subscription operations shall apply.
  4. For the procedures for its redemption operations, the procedures set out in Chapter 5 for sub-distributors' redemption operations shall apply.
  5. For the procedures for its switching operations, the procedures set out in Chapter 6 for sub-distributors' switching operations shall apply.
  6. For the procedures for its operations in the case of interest/proceeds distribution, the procedures set out in Chapter 7 for sub-distributors' operations in the case of interest/proceeds distribution shall apply.
  7. For the procedures for its operations in the case of a cancellation of fund offering or a suspension of fund offering and sale, the procedures set out in Chapter 8 for sub-distributors' operations in the case of a cancellation of fund offering or a suspension of fund offering and sale shall apply.
  8. For the procedures for its operations in the cases of liquidation and merger, the procedures set out in Chapter 9 for sub-distributors' operations in the cases of liquidation and merger shall apply.
  9. For the procedures for its terminating the offering and sale business for an offshore fund and for its branch office's suspension or termination of business operations, the procedures set out in Articles 131-1 and 131-2 for sub-distributors shall apply.
  10. For the procedures for its account management, the procedures set out in Chapter 11 for sub-distributors' account management shall apply.
  11. For the procedures for its handling of exceptions, the procedures set out in Chapter 12 for sub-distributors' handing of exceptions shall apply.
Article 155     For handling offshore fund transaction information transmission and payment operations, TDCC will charge fees in accordance with its fee schedule for offshore fund services.
Article 156     Any matters on which these Directions are silent shall be governed by the TDCC Operating Rules for Offshore Funds and other applicable provisions.
Top