| Article 8 |
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| Article 9 |
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| Article 10 |
A master agent other than one handling the offering and sale of offshore ETFs in Taiwan shall post an operating bond as specified below with a financial institution permitted to provide custodian services and having a certain credit rating or higher from a credit rating agency recognized by the FSC:
1. Where the master agent represents funds managed by one offshore fund manager, NT$30,000,000;
2. Where the master agent represents funds managed by two offshore fund managers, NT$50,000,000;
3. Where the master agent represents funds managed by three or more offshore fund managers, NT$70,000,000.
Except for investments in offshore funds through a non-discretionary trust of money agreement or through a foreign securities brokerage agreement, where a sub-distributor purchases offshore funds in its own name on behalf of investors, the sub-distributor shall post an operating bond of NT$20,000,000 with a financial institution meeting the qualification in the preceding paragraph.
The operating bonds under the preceding two paragraphs shall be in cash, bank deposits, government bonds, or financial bonds, shall be free of any pledge or any form of encumbrance, and shall be placed with only one financial institution. Any change of the custodian institution or withdrawal of an operating bond may proceed only after it has been reported to the FSC via the SITCA and approved by the FSC.
Directions for the procedures for deposit, withdrawal, and substitution of operating bonds, and any subsequent amendments thereto, shall be prescribed by the SITCA and submitted to the FSC for approval. |
| Article 11 |
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| Article 12 |
The master agent shall publicly announce the following events within three days from the occurrence thereof:
1. Revocation of the represented offshore fund’s approval or restriction of its investment activities by the competent authority in the place where the offshore fund is registered;
2. Inability of the offshore fund institution to continue to conduct relevant business due to dissolution, suspension of business, transfer of business, merger or acquisition, cessation of business, voidance or revocation of its permit under laws or regulations of the country where it is located, or other similar material event;
3. Voidance by the FSC of the registration of an offshore fund represented by the master agent;
4. Any disposition made with respect to the offshore fund manager by the competent authority thereof;
5. Any suspension or resumption of transactions of an offshore fund represented by the master agent;
6. Any amendment or addition to the content of an offshore fund prospectus or other relevant documents delivered to investors with respect to an offshore fund represented by the master agent, where the change or addition materially affects investors’ rights or interests;
7. Any investor litigation or material dispute in connection with the offering and sale in Taiwan of an offshore fund represented by the master agent;
8. Any material change to the finances or business of the master agent;
9. Any change in sub-distributors;
10. Any change in participating dealers;
11. Any occurrence of a material event relating to the offshore ETF represented by the master agent, and such event materially affects investors’ rights or interests, or any approval to change the underlying index by the competent authority in the place where the ETF is registered;
12. Any other event materially affecting investors’ rights or interests.
The master agent shall report any matters under subparagraphs 1, 2, 4, 5, or 11 of the preceding paragraph to the FSC within 3 days from the occurrence thereof. The master agent shall submit any matters under subparagraphs 9 or 10 to the SITCA in advance for its review and approval, and the SITCA shall then prepare a monthly report to the FSC. The master agent shall, by the 5th day of the following month, summarize and report any matters under subparagraphs 6 to 8 or subparagraph 12 to the SITCA, which shall then forward the report to the FSC.
Where the master agent is unable to continue offering and distributing any offshore fund due to events referred to in subparagraphs 1 through 3 of paragraph 1, the master agent shall assist investors to carry out subsequent redemption, conversion, or other relevant matters relating to the offshore funds.
An offshore fund shall require the approval of the FSC for any of the following events, and shall publicly announce such event within three days from the occurrence thereof:
1. Transfer, merger, or liquidation of the fund;
2. Increase in the remuneration of the offshore fund manager or the custodian institution;
3. Termination of the offering and sale of the offshore fund in Taiwan;
4. Change of the offshore fund manager or the custodian institution of the offshore fund;
5. Change of the fund name;
6. Change of the basic investment policies or scope of the fund for investing in securities or trading securities related products, where inconsistent with the provisions of Article 23 hereof.The master agent shall publicly announce the following events within three days from the occurrence thereof:
1. Revocation of the represented offshore fund’s approval or restriction of its investment activities by the competent authority in the place where the offshore fund is registered;
2. Inability of the offshore fund institution to continue to conduct relevant business due to dissolution, suspension of business, transfer of business, merger or acquisition, cessation of business, voidance or revocation of its permit under laws or regulations of the country where it is located, or other similar material event;
3. Voidance by the FSC of the registration of an offshore fund represented by the master agent;
4. Any disposition made with respect to the offshore fund manager by the competent authority thereof;
5. Any suspension or resumption of transactions of an offshore fund represented by the master agent;
6. Any amendment or addition to the content of an offshore fund prospectus or other relevant documents delivered to investors with respect to an offshore fund represented by the master agent, where the change or addition materially affects investors’ rights or interests;
7. Any investor litigation or material dispute in connection with the offering and sale in Taiwan of an offshore fund represented by the master agent;
8. Any material change to the finances or business of the master agent;
9. Any change in sub-distributors;
10. Any change in participating dealers;
11. Any occurrence of a material event relating to the offshore ETF represented by the master agent, and such event materially affects investors’ rights or interests, or any approval to change the underlying index by the competent authority in the place where the ETF is registered;
12. Any other event materially affecting investors’ rights or interests.
The master agent shall report any matters under subparagraphs 1, 2, 4, 5, or 11 of the preceding paragraph to the FSC within 3 days from the occurrence thereof. The master agent shall submit any matters under subparagraphs 9 or 10 to the SITCA in advance for its review and approval, and the SITCA shall then prepare a monthly report to the FSC. The master agent shall, by the 5th day of the following month, summarize and report any matters under subparagraphs 6 to 8 or subparagraph 12 to the SITCA, which shall then forward the report to the FSC.
Where the master agent is unable to continue offering and distributing any offshore fund due to events referred to in subparagraphs 1 through 3 of paragraph 1, the master agent shall assist investors to carry out subsequent redemption, conversion, or other relevant matters relating to the offshore funds.
An offshore fund shall require the approval of the FSC for any of the following events, and shall publicly announce such event within three days from the occurrence thereof:
1. Transfer, merger, or liquidation of the fund;
2. Increase in the remuneration of the offshore fund manager or the custodian institution;
3. Termination of the offering and sale of the offshore fund in Taiwan;
4. Change of the offshore fund manager or the custodian institution of the offshore fund;
5. Change of the fund name;
6. Change of the basic investment policies or scope of the fund for investing in securities or trading securities related products, where inconsistent with the provisions of Article 23 hereof. |
| Article 13 |
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| Article 14 |
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| Article 15 |
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| Article 16 |
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| Article 17 |
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