According to Article 10 of Taiwan’s “Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals”, offshore foreign institutional investors (“FINI”) (i.e. institutions incorporated outside the territory of Taiwan) investing in securities listed on the Taiwan Stock Exchange (“TWSE”) and/or the Taipei Exchange (‘Taiwanese Products”) must register with the TWSE. Phillip Securities Pte Ltd (“PSPL”) has been instructed by the regulatory body in Taiwan to ensure that:
(i) Mainland Chinese and Taiwanese nationals do not invest in any investment products listed on the aforementioned exchanges via our FINI license;
(ii) Funds remitted to the FINI to invest in Taiwanese investment products do not come from Mainland Chinese or Taiwanese sources, and
(iii) No single beneficiary owner holds 10% or higher of a single investment product’s issued share capital (“10% Rule”), such as 10% or more of a listed company’s share capital.
With effect from 18 November 2016, clients are required to acknowledge a Letter of Undertaking before they are able to trade in any securities listed on the TWSE; if they fail to do so, they are not allowed to purchase any Taiwan shares but will be allowed to liquidate their holdings.
Click to see Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals
Kindly contact your Trading representatives if you have any enquiries. The Letter of Undertaking can be obtained from your Trading Representatives.