On Feb. 12, 2025, TAI DCC adjusted stock affairs operations, including modifications to relevant file specifications and operational guidelines to align with regulatory changes.
Securities holder register file (PSM) has been updated, and a new foreign investor custodian file (MCU) has been introduced to manage multiple custodian accounts.
Custodian accounts are categorized as primary, secondary, or unregistered in MCU file.
Issuers must ensure that data in the PSM and MCU files remains consistent, particularly for multiple custodian indicators and total shareholding records.
Existing specifications will continue to apply for book closures on/before Feb. 21, 2025.
Primary custodians must open accounts upon client request and ensure accurate investor data, such as identification numbers and business registration details.
Adjustments have also been made to ETF/ETN and foreign investor holding files.
C.A.net stock affairs operations are updated to include multiple custodian indicator in stockholder holdings uploads, new tax rate fields in tax rate data downloads.
Securities holder register includes both primary, secondary custodian details; primary custodians are responsible for handling tax benefits, voting-related data transmission.
Cross-border voting procedures allow primary, secondary custodians to adjust client voting instructions, but only primary custodians can use the electronic voting platform.
On Aug. 23, TAI FSC issued order re custodian designation of FIs.
TAI FSC, TAI Justice issued order stipulating rules that offshore foreign institutional investors (FINI) may designate 2 or more custodian institutions; based on Regulations governing investment in securities by overseas Chinese and foreign nationals.
Custodian Designation
FINIs are allowed to appoint more than one custodian, including one primary and up to three secondary custodians; appointments must adhere to operational guidelines.
Investors must follow specific regulations regarding fund usage, limits on the sale of borrowed securities, and quotas for lending securities in private funds and unit trusts.
FINIs appointing more than one custodian, engaging in futures trading, must comply with Directions for futures trading by overseas Chinese and foreign nationals.
Effectiveness
The order is effective from Aug. 23, 2024.
Aug. 26, 2024 Press Release
On Aug. 26, 2024, TAI FSC issued press release on allowing FINIs to appoint multiple custodians, to encourage more international investment in Taiwan's stock market.
System development and construction will be carried out by the stock exchange, custodians, securities firms; expected to be implemented in the first quarter of 2025.
Aug. 26, 2024 TAI EXC Press Release
On Aug. 26, 2024, TAI EXC referred to TAI FSC order allowing FINIs to appoint multiple custodian institutions; previously, FINI were restricted to appointing only 1 custodian.
New guideline, titled Operation directions for offshore foreign institutional investors to designate more than one custodian institution, will be effective from Feb. 24, 2025.
Aims to attract more foreign investors to continue holding Taiwanese stocks, increase international visibility of Taiwan's capital market, enhance overall market efficiency.
Aug. 26, 2024 TAI EXC Directions
On Aug. 26, 2024, TAI EXC added new regulations under sections 1 and 4 of Operation directions for applications by overseas Chinese, foreign nationals, and mainland area investors for registration to invest in domestic securities or trade domestic futures.
The directions specify operational norms for registration of more than two custodians.
They also take effect from Feb. 24, 2025.
Aug. 30, 2024 TAI Trust
On Aug. 30, 2024, TAI Trust informed of TAI EXC's letter re the amendments above.
Sep. 2, 2024 TAI Trust
On Sep. 2, 2024, TAI Trust shared TAI EXC's documents related to designation of two or more custodians, and amendments to operation directions, as described above.
Sep. 23, 2024 TAI DCC File Specifications
On Sep. 23, 2024, TAI DCC instructed regarding stock operations, file specifications.
Maintain existing principle of consolidating accounts by latest communication address; add field to identify foreign investors using multiple custodians; new supplementary file will list foreign investors' account details under primary and secondary custodians.
Adds multiple custodians indicator for reconciling foreign investors’ holdings across different custodians; adds certain fields, dates of applicable preferential tax rates.
Issuers must report the foreign investor's holdings under the primary custodian account, using the primary custodian account name field added to these files.
Sep. 24, 2024 TAI FEX
On Sep. 24, 2024, TAI FEX notified primary and secondary custodians to establish separate accounts, record daily transactions in detail, and report details to authorities.
By 10th of each month, they must prepare a detailed report of the previous month's equity in futures traders' client margin accounts and the cumulative amount of foreign exchange settlements, and submit this report to the foreign exchange authorities.
Document dated Sep. 24, 2024, received from TAI FEX Sep. 25, summarized Sep. 30.
Oct. 2024 TAI DCC File Specifications
On Oct. 8, 2024, TAI DCC issued notice re adjustments to operational procedures; file specification due to regulatory changes allowing designation of than two custodians.
Securities owner registry will be updated with a new field indicating if an investor has multiple custodians; a new file will provide additional information on these investors.
In the C.A.net securities operations, a new field will also be added to the shareholder holding reconciliation file, to mark investors which have multiple custodians.
Preferential tax rate details file will be updated to include the start and end dates.
Add main custodian account name field in ETF/ETN, foreign institutional investor files.
Feb. 2025 TAI DCC Filing Adjustment
On Feb. 12, 2025, TAI DCC adjusted stock affairs operations, including modifications to relevant file specifications and operational guidelines to align with regulatory changes.
Securities holder register file (PSM) has been updated, and a new foreign investor custodian file (MCU) has been introduced to manage multiple custodian accounts.
Custodian accounts are categorized as primary, secondary, or unregistered in MCU file.
Issuers must ensure that data in the PSM and MCU files remains consistent, particularly for multiple custodian indicators and total shareholding records.
Existing specifications will continue to apply for book closures on/before Feb. 21, 2025.
Primary custodians must open accounts upon client request and ensure accurate investor data, such as identification numbers and business registration details.
Adjustments have also been made to ETF/ETN and foreign investor holding files.
C.A.net stock affairs operations are updated to include multiple custodian indicator in stockholder holdings uploads, new tax rate fields in tax rate data downloads.
Securities holder register includes both primary, secondary custodian details; primary custodians are responsible for handling tax benefits, voting-related data transmission.
Cross-border voting procedures allow primary, secondary custodians to adjust client voting instructions, but only primary custodians can use the electronic voting platform.
Regulators
TAI DCC; TAI EXC; TAI FEX; TAI FSC; TAI Justice; TAI Trust
