| Organisation |
| Organisation |
Order of the Financial Supervisory Commission |
| Issue No. |
| Issue No. |
Financial-Supervisory-Securities-Firms 11303487863
CH
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| Issue Date |
| Issue Date |
2024/08/23 |
| Content |
| Content |
Order of the Financial Supervisory Commission
Issue date: 23 August 2024
Issue no.: Financial-Supervisory-Securities-Firms-11303487863
- This Order is issued pursuant to Article 4, paragraph 2 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals.
- Offshore overseas Chinese and foreign nationals investing in government bonds, corporate bonds, financial bonds, New Taiwan (NT) dollar bonds issued in Taiwan by international financial institutions, exchange traded notes, debt security tokens, money market instruments, and money market funds, and engaging in trades of over-the-counter (OTC) equity derivatives, OTC NT dollar interest rate derivatives, OTC structured instruments, and option-part trades on convertible bond asset swaps, shall comply with the restrictions set out in Point 4 herein. Investments in money market instruments are limited to bills within 90 days of maturity.
- The "OTC NT dollar interest rate derivatives" referred to in the preceding point include NT dollar forward rate agreements, interest rate swaps, and interest rate options; "OTC equity derivatives" include options and equity swaps of Taiwan equities which are denominated in either NT dollars or foreign currency, and options and equity swaps of foreign equities which are denominated in either NT dollars or foreign currency; "OTC structured instruments" includes structured instruments linked to domestic or overseas equities or interest rates which are denominated in either NT dollars or foreign currency.
- The total amount invested by an offshore overseas Chinese or foreign national in government bonds, corporate bonds, financial bonds, NT dollar bonds issued in Taiwan by international financial institutions, exchange traded notes, debt security tokens, money market instruments, and money market funds, plus all NT dollar premiums paid for trades of OTC equity derivatives, OTC NT dollar interest rate derivatives, OTC structured instruments, and option-part transactions on convertible bond asset swaps, plus the net settlement amounts paid on price differences of swaps, plus NT dollar margins paid for central clearing of domestic OTC derivatives, must not exceed 30 percent of the net inward remittance; provided, investment in privately placed convertible corporate bonds will not be counted in the aforesaid total amount.
- If an offshore foreign institutional investor designates two or more custodians, the handling of the matters in the preceding Point shall be calculated according to the assets in custody with the primary custodian and with the secondary custodian(s) respectively.
- An offshore overseas Chinese or foreign national that writes options may not apply, prior to maturity, for foreign exchange settlement for the premiums collected. This restriction does not apply, however, to transactions that are linked to overseas equity products and thus require application for foreign exchange settlement.
- This Order is effective from this day forward. The 12 September 2022 Order No. Financial-Supervisory-Securities-Firms-11103836671 is repealed from this day forward.
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