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Title Operation Directions for Applications by Overseas Chinese, Foreign Nationals, and Mainland Area Investors for Registration to Invest in Domestic Securities or Trade Domestic Futures CH
Date 2023.08.18 ( AMENDMENT )

Article Content

1     Application for Registration of Offshore Overseas Chinese or Foreign National
  1. New addition
    1. Basis:
      2. Article 10 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals (hereinafter referred to as the "Regulations"), Point 7 of the Directions for Futures Trading by Overseas Chinese and Foreign Nationals (hereinafter referred to as the "Directions"), Articles 77-4 and 77-5 of the Operating Rules of the Taiwan Stock Exchange Corporation (TWSE), and Article 44-4 of the Operating Rules of the Taiwan Futures Exchange Corporation (TAIFEX).
    2. Qualification:
      3. The term "offshore overseas Chinese or foreign national" means any overseas Chinese, foreign natural person or foreign institutional investor outside the territory of the Republic of China (ROC).
      1. Offshore overseas Chinese or foreign natural person: Person who has a nationality other than the Mainland Area, is at least 18 years old and holds an identification certificate.
      2. Offshore foreign institutional investor: Institution incorporated outside the territory of the ROC, according to the laws and regulations of the locale.
    3. Application documents
      1. Registration Application Form: The agent (or representative) of the offshore overseas Chinese or foreign national shall fill out a "Registration Application Form for Offshore Foreign Institutional Investors to Invest in ROC Securities or to Trade ROC Futures" as in Form 1-1-1 and "Application Form for Registration of Offshore Overseas Chinese and Foreign National Natural-Person Investors to Invest in ROC Securities or Trade ROC Futures," Form 1-1-2.
      2. Documents to be enclosed: When applying for registration, the offshore overseas Chinese or foreign national shall prepare the following documents:
        1. Power of attorney to agent or letter of appointment to representative.
        2. Identification certificates.
          1. Offshore overseas Chinese or foreign natural person: passport, identification certificate or other documents with a photo attached which can prove the applicant's nationality or status.
          2. Offshore foreign institutional investor
            1. Non-fund type
              1. Corporation
                2. Certificate of incorporation issued by a local governing authority such as a company registration certificate; if there is no company registration certificate, any of the following documents may serve as replacement:
                1. The articles of incorporation which the local governing authority has on record.
                2. Qualification certificate issued by the local tax authorities.
                3. Statement of purpose of registration of TWSE/TPEx primary listed company, Emerging Stock company or TWSE/TPEx secondary listed company.
              2. Other organization established according to law, such as a government investment institution, non-profit organization, foundation or academic organization. The certificate or the letter from the local governing authority approving its establishment shall be presented; if there is no such certificate or letter, any of the following documents may serve as replacement:
                1. The articles of organization which the local governing authority has on record.
                2. The regulations or rules enacted as the basis for the establishment of the applicant.
                3. Qualification certificate issued by the local tax authorities.
            2. Type of fund
              1. The certificate or the letter from the local governing authority approving its establishment shall be presented; if there is no such certificate or letter, any of the following documents may serve as replacement:
                1. The record published in the web site of the local governing authority showing that the fund has completed its establishment registration.
                2. Document, such as an offering prospectus, trust contract, or memorandum for private placement, that can serve to show that the local governing authority has accepted the filing or has created a record.
                3. Qualification certificate issued by the local tax authorities.
                4. In case that the fund was established by an international organization not subject to government supervision in any jurisdiction, copies of the meeting minutes regarding the establishment of the fund by the international organization and the statement of its decision to invest in the Taiwan market.
              2. In the case of an applicant for registration in the form of a subfund, if it is unable to provide documents as provided in item A, it shall submit the following documents as replacement:
                1. Document in compliance with item A for the parent fund.
                2. Document specifying the legal or regulatory basis of the establishment of the subfund, and sufficient to prove the relationship between the parent fund and the subfund.
          3. If the offshore foreign institutional investor of the fund type is required to check "hedging" or "investment" and "hedging" in Point 2 of the Declarations section of the Registration Application Form, the TWSE or TAIFEX may, when necessary and after completion of registration, request the investor or trader to provide the fund prospectus or the fund establishment agreement and any documents explaining its investment or trading strategies and other relevant documents.
    4. Procedural flow
      1. Transmission of Registration Form information: Once the agent (or representative) of the offshore overseas Chinese or foreign national applying for registration transmits the filled-out registration application information online through the TWSE system, the TWSE will, after on-line review of information transmitted through computer has been completed, issue a "Certificate of Completed Registration for Offshore Overseas Chinese and Foreign Nationals," Form 1-2.
      2. Relevant materials: The agent (or representative) of the offshore overseas Chinese or foreign national applying for registration shall transmit the registration application information to the TWSE system. The TWSE will periodically review the relevant materials based on the materials in the system. The agent (or representative) of the offshore overseas Chinese or foreign national shall retain a full set of the documents in items C.a and C.b above and keep them on file for the record. The TWSE or TAIFEX may request the investor or trader to provide relevant information whenever necessary.
      3. Denial of registration: The TWSE or TAIFEX may deny the registration if any of the following circumstances applies to the offshore overseas Chinese or foreign national applying for registration:
        1. The registration documents or the particulars they contain are found to be fraudulent or untrue;
        2. An incomplete set of registration documents is submitted or the documents have not been fully filled out, and the applicant has failed to supplement the documents within 5 days following notification by the TWSE or TAIFEX; or
        3. There is a serious violation of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals or the laws or regulations governing securities or futures.
  2. Amendment
    3. When there has been a change in the content of registration particulars for the offshore overseas Chinese or foreign national after completion of registration, the agent (or representative) shall immediately apply to the TWSE to amend the registration.
    1. Application:
      1. Name change
        2. Amendment Registration Application Form: The agent (or representative) of the offshore overseas Chinese or foreign national shall transmit a "Registration Application Form for Name Change by Offshore Overseas Chinese and Foreign Nationals" or a "Registration Application Form for Change of Other Item by Offshore Overseas Chinese and Foreign Nationals" as in Form 1-3-1 and Form 1-3-3 online through the TWSE system. Once no error is found in an online check through the TWSE system, the agent (or representative) can print out a "Certificate of Amendment Registration Completion for Offshore Overseas Chinese and Foreign Nationals," Form 1-4, with which the agent (or representative) can apply to the securities firm or futures commission merchant for the change of account information. The relevant documents/materials need not be sent to the TWSE for recordation, but the TWSE or TAIFEX may request the investor or trader to provide relevant information when necessary.
      2. Change of agent or representative
        3. Amendment Registration Application Form: The pre-change agent (or representative) of the offshore overseas Chinese or foreign national shall transmit a "Registration Form for Change of Agent or Representative by Offshore Overseas Chinese and Foreign Nationals," Form 1-3-2, online through the TWSE system. The post-change agent (or representative) of the offshore overseas Chinese or foreign national shall transmit a "Registration Application Form for Change of Other Item by Offshore Overseas Chinese and Foreign Nationals," Form 1-3-3, online through the TWSE system. The agent (or representative) can print out a "Certificate of Amendment Registration Completion for Offshore Overseas Chinese and Foreign Nationals," Form 1-4, with which the agent (or representative) can apply to the securities firm or futures commission merchant for the change of account information. The relevant documents/materials need not be sent to the TWSE for recordation, but the TWSE or TAIFEX may request the investor or trader to provide relevant information when necessary.
      3. Change of nationality
        4. The agent (or representative) of the offshore overseas Chinese or foreign national shall apply to the TWSE by dedicated letter and attach evidentiary documentation of the change of nationality to apply for registration of the change.
      4. Amendment of other items: For changes in item 3 of the Registration Application Form, investor type, item 4, declarations, item 5, the background information of the shareholders, item 6, other basic information, or item 7, insider information, the agent (or representative) of the offshore overseas Chinese or foreign national shall transmit a "Registration Application Form for Change of Other Item by Offshore Overseas Chinese and Foreign Nationals," Form 1-3-3, online through the TWSE system. The relevant documents/materials need not be sent to the TWSE for recordation, but the TWSE or TAIFEX may request the investor or trader to provide relevant information when necessary.
  3. Cancellation
    1. Application for cancellation of registration of offshore overseas Chinese or foreign national:
      1. Where the agent (or representative) of the offshore overseas Chinese or foreign national applying for cancellation is not a futures commission merchant, it shall transmit an "Application Form for Cancellation of Registration of Offshore Overseas Chinese and Foreign Nationals," Form 1-5, online through the TWSE system, and send by fax or email Form 1-5, the power of attorney for declaration of tax return and tax payment, and the letter of consent issued by the tax authority to the TWSE for confirmation. After TWSE confirmation, the agent (or representative) can print out a "Certificate of Completed Registration Cancellation for Offshore Overseas Chinese and Foreign Nationals," Form 1-6, online through the TWSE system, and then proceed to the securities firm or futures commission merchant to carry out account cancellation.
      2. Where the agent (or representative) of the offshore overseas Chinese or foreign national applying for cancellation is a futures commission merchant, it shall transmit an "Application Form for Cancellation of Registration of Offshore Overseas Chinese and Foreign Nationals," Form 1-5, online through the TWSE system, and send by fax or email Form 1-5 to the TWSE for confirmation. After TWSE confirmation, the agent (or representative) can print out a "Certificate of Completed Registration Cancellation," Form 1-6, and then proceed to the futures commission merchant to carry out account cancellation.
    2. Cancellation of registration by the TWSE or TAIFEX:
      1. If the offshore overseas Chinese or foreign national carrying out the registration has violated Article 11, paragraph 2 of the Regulations, or Point 8, paragraph 2 of the Directions, or is found by the competent authority governing relevant business to have violated relevant laws or regulations, the TWSE or TAIFEX may cancel the registration, and notify the securities firm or futures commission merchant where the account has been opened to proceed in accordance with the following provisions:
        1. The securities firm may not accept buy orders, provided that this restriction does not apply where the buy orders are for the purpose of returning borrowed securities in securities borrowing and lending transactions. The securities broker shall cancel the account after the account balance has been settled.
        2. The futures commission merchant shall immediately stop accepting trading orders, provided that this restriction does not apply to orders for disposing of existing transactions. The futures commission merchant shall immediately cancel the account after the claims and obligations of the account have been fully settled.
      2. When 6 full months have passed after the cancellation of the registration of the offshore overseas Chinese or foreign national by the TWSE or TAIFEX and the cause for the cancellation has been extinguished or improved, the agent (or representative) of the offshore overseas Chinese or foreign national may submit by letter relevant materials to the TWSE or TAIFEX to apply for restoration of registration, provided that if the circumstances are severe, the required time period before restoration after the cancellation may be extended to 2 years, or the cancellation may be made permanent. If the cause for the cancellation involves violation of foreign exchange related laws and regulations, the matter shall be referred to the competent authority, which shall consult the opinion of the competent authority governing foreign exchange business.
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