Provisions Governing Permission for the Use of Discretionary Investment Services by Mainland Area Investors Engaged in Securities Investment and Futures Trading in Taiwan

Order of the Financial Supervisory Commission, Executive Yuan

Issue date: 30 April 2009
Issue no: Financial-Supervisory-Securities-VIII-09800176692

1. A mainland area investor that invests in securities in Taiwan by any of the methods set out in Article 11 of the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland Area Investors is allowed to place its investments under discretionary investment management by entering into a mandate arrangement with a securities investment trust enterprise, securities investment consulting enterprise, trust enterprise, or securities broker that has obtained approval from the FSC to conduct discretionary investment business.
2. A mainland area investor investing in securities as set out in the preceding point shall abide by the applicable provisions of the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland Area Investors and the Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises.
3. A firm that is among the types listed under point 1 must first obtain prior permission from the Central Bank before conducting discretionary investment services for mainland area investors that use foreign currency to invest in foreign-currency denominated securities via a discretionary investment arrangement.
4. The present Order is effective from 30 April 2009.

Original to: Post on the public notice board of the FSC and the public notice board of the Securities and Futures Bureau, FSC
Copy to: Foreign Exchange Department, Central Bank of the Republic of China (Taiwan); Banking Bureau, FSC; Financial Examination Bureau, FSC; Department of Legal Affairs, FSC; Taiwan Stock Exchange Corporation; GreTai Securities Market; Taiwan Depository & Clearing Corporation; The Bankers Association of the Republic of China; Taiwan Securities Association; Trust Association of R.O.C.; The Securities Investment Trust and Consulting Association of the R.O.C.; Lex Data Information Inc.; Winkler Partners, Attorneys at Law; all custodian banks