The Taiwan Monthly

Dec. 2017

Trading Policies

New Requirement of Declaration of Registration Application for Foreign Investors

According to the Regulations Governing Securities Investment and Futures Trading in Taiwan by Mainland Area Investors, only Qualified Domestic Institutional Investors (QDII) approved by China Securities, Banking or Insurance Regulatory Commission may engage in securities investment in Taiwan. To raise awareness of the securities regulations in Taiwan among foreign investors and to prevent violation arising from misunderstanding or unfamiliarity with the regulations, the Taiwan Stock Exchange has amended the declarations in the registration application form for offshore foreign investors to include the requirements that the funds to be remitted to invest in securities or to trade futures by the applicant or its client (who is the actual investor) should not come from Taiwan or from Mainland China, and the applicant or its client (who is the actual investor) should not be an individual, juristic person, organization or any other institution from Mainland China or its third-area invested company.


Furthermore, the applicant who is a Hong Kong or Macao resident as defined under Article 4 of the Laws and Regulations Regarding Hong Kong & Macao Affairs shall submit the required identification documents and apply mutatis mutandis to the regulations governing the investment and remittance by foreign nationals and overseas Chinese.


If a foreign applicant or its client does not meet the aforesaid requirement, any securities in Taiwan held in its portfolio must be disposed. Furthermore, foreign investors are required to adhere strictly to the know-your-customer (KYC) procedure and comply with the applicable regulations and rules related to securities and futures in Taiwan.