Financing Service
In 2006, the competent authority authorized lending in connection with securities business by securities firms.in 2016 for the securities firms to conduct lending business for unrestricted purposes and securities finance companies to handle lending business using securities as collateral.
Financing service show or hide details
-
1.
What are the application procedures for customers who provide their domestic funds deposited in the investment trust companies' registration accounts and recorded under the details of funds owners as collateral for loans?
show or hide details(1) The customers shall apply to the investment trust companies to transfer their open-end fund beneficial certificates used as collateral to the customers' central depository accounts with securities firms/securities finance companies by executing the "Issuer Depository Book-Entry Account/Registration Account - Deposited Securities Account Transfer Application" transaction (Code: 671). (2) The customers shall then apply to the securities firms/securities finance companies to transfer their open-end fund beneficial certificates from the central depository accounts to the money lending/settlement financing collateral account.
-
2.
If the investor submits the loan application in a non-face-to-face manner, and has signed the consent letter for exemption from affixing signature or seal on the loan application, after the securities firm has verified and retained the consent letter as a record, investors may be exempted from affixing signature or seal on the loan application in accordance with relevant rules. When the securities firms proceed with collateral operations for the investors, shall the former fill up the applications for the latter? Shall the securities firms affix their seals-of-record in the "Applicant Signature" field of the application?
show or hide details(1) According to TDCC's book-entry transfer operation manual, if the investor has signed the consent letter for exemption from affixing signature or seal pursuant to relevant rules and the collateral application data have been verified and retained as records by the securities firms, investor does not have to present the securities passbook when securities firms handle a non-face-to-face application and the application form shall be filled up by the securities firms. If the securities firms execute the "Money Lending/Settlement Financing Collateral Account Transfer - Electronic Transmission" transaction (Code: K10S) to process investors' collateral operation in a batch, only one application form shall be filled up. The person-in-charge and the supervisor shall affix their seals on the application form and attach the outcome report by electronic transmission. Securities firms need not affix their seals-of-record in the "Applicant Signature" field of the application. (2) Concerning the aforementioned operation, which does not require an in-person application, investors can apply via phone or electronic transmission. However, inventors shall contact their securities firms to find out whether this function is available.
-
3.
How do insiders of companies with stocks listed in Taiwan Stock Exchange or the Taipei Exchange proceed with transferring securities collateral for non-restricted purpose loans?
show or hide detailsPursuant to the "Operating Rules for Securities Firms Handling Non-Restricted Purpose Loan," when insiders of companies with stocks listed in Taiwan Stock Exchange or the Taipei Exchange use their company stocks as financing collateral or supplementary collateral, pledge shall be created for those stocks in accordance with the TDCC's operating rules and the "Participant's Pledge and Delivery of Securities for Book-Entry Transfer."
(Chinese version only)