• 1.

    Why did TDCC establish the Offshore Structured Noteds Observation Post System (referred to as the “system” hereunder)?

    Due to the complexity of offshore structured products, it is difficult for individual investors to understand the characteristics and risks of the products and it has caused many investment disputes. The FSC promulgated the "Regulations Governing Offshore Structured Products" on July 23, 2009 which require issuers or master agents to announce related information based on the Regulations and complete information report and announcement procedures through the designated information transmission system. The FSC also issued an official announcement to designate TDCC and the "Offshore Structured Notes Observation Post System (referred to as the “system” hereunder)" established by TDCC as the reporting institution and information transmission system in the Regulations. The system was completed on August 23, 2009 and launched online.

  • 2.

    What does dematerialized issuance mean?

    Dematerialized issuance means the companies would not print paper securities. Instead, the issue quantities are registered at the centralized securities depository enterprise, and the shares are delivered to owners’ depository accounts by book-entry transfer.

  • 3.

    Q1: Once an investor opens a central depository account, would the stocks under custody enjoy better service in terms of shareholders' rights and interests?

    With regard to stocks under the custody of TDCC, when companies with stocks listed in Taiwan Stock Exchange or the Taipei Exchange convene shareholders' meetings or distribute dividends, bonus or other benefits, the TDCC would automatically compile the list of stock owners on behalf of the securities firms using computer records and deliver it to the issuing company or its shareholder services agent to complete the transfer procedures. The listed companies would send out the notice for exercising shareholders' rights to investors based on the stock owners list provided by the TDCC. Investors need not be concerned with the transfer. However, the most important thing is that changes in the investor's mailing address shall promptly be updated at the investor's securities firms and the issuing company or its shareholder services agent to avoid any delay in delivering listed companies' notices that may affect the investor's rights and interests.

  • 4.

    When was the bills and bonds depository and clearing system first implemented?

    The mechanism was effective on April 2, 2004.

  • 5.

    When did the full dematerialization of commercial papers occur? What are the procedures for account opening and issuance procedures for related issuers?

    Starting from September 18, 2017, the dematerialized registration system was adopted for all financing commercial papers and foreign-currency commercial papers. No commercial papers shall be issued in physical format. For more information on related operating procedures for issuers' applications of registration of accounts and issuance of commercial paper, please visit https://cp2.tdcc.com.tw/. You can also visit the TDCC homepage (www.tdcc.com.tw) and click on "Registered Commercial Paper" to obtain information.

  • 6.

    How does the investor process direct transfer, inheritance, or donation of bonds between private parties?

    Starting from December 25, 2015, the direct transfer, inheritance, and donation of fixed income between private parties for public offering bonds shall be operated by the participant who shall review related documents and operate the "bond transfer" transaction (transaction code C56) for account transfer operations. For private placement bonds, the participant shall operate the "direct account transfer/cancellation application between individuals" transaction (transaction code 375) or the "inheritance, donation, price offset by shares, and waiver of stocks account transfer/cancellation application" transaction (transaction code 376) for the account transfer.

  • 7.

    When was the bills and bonds depository and clearing system first implemented?

    The mechanism was effective on April 2, 2004.

  • 8.

    What is the purpose of establishing“FUNDCLEAR”?

    Due to the wide variety of offshore funds, the FSC (Financial Supervisory Commission) implemented the “Regulations Governing Offshore Funds” on November 1, 2004 which stipulates that the master agent shall publicly conduct the announcement and notification persuade to the regulations and complete the reporting and announcement by inputting the information through the designated information transmission system. The FSC has issued a notice appointing TDCC and “FUNDCLEAR” as the designated reporting agency and information transmission system.

  • 9.

    問題一: 股東向公司辦理股票事務或行使其他有關權利,以簽名方式辦理者,公司如無法辨識時,該如何處理?

    公司得要求股東親赴公司當場簽名,並提示國民身分證、居留證、護照、經當地國我駐外單位驗證或由當地法院或政府機構出具證明或經當地國法定公證機關驗證之身分證明文件或其他身分證明文件。

    法令依據:股務處理準則第11條

  • 10.

    Are there any regulations governing the current onshore and offshore mutual funds order placement through TDCC’s Fund Order-Routing Platform and trade information transmission between onshore and offshore mutual fund firms?

    1. According to the Regulations Governing Offshore Funds FAQ, the 10th question states: TDCC established a Fund Order-Routing Platform to provide the automated transmission service for onshore mutual fund order placement and transaction confirmation. It also provides the transmission service for offshore information transmission service agencies to transmit the transaction information to offshore mutual fund institutions.
    2. If sub-distributors such as master agents and securities investment trust firms intend to adopt the information transmission service agency’s method for onshore purposes, they should apply through TDCC’s mutual fund trade information transmission platform.
  • 11.

    What is the regulation for the issuance of onshore funds (securities investment trust funds and futures trust funds) in dematerialized form?

    1 Article 32, Item 2 of the Securities Investment Trust and Consulting Act stipulates that beneficial interest certificates may be issued in scripless form and transferred by the book-entry method. In accordance with Article 34, Item 4 of the same law, book-entry transfer or registration should be handled in accordance with the Regulations Governing Book-Entry Operations for Centrally Deposited Securities. 2 Article 59, Item 2 of the Regulations Governing Futures Trust Funds stipulates that beneficial certificates shall be issued in dematerialized form and shall be delivered by registry and book-entry transfer.

  • 12.

    What services are provided by TDCC’s Mutual Fund Trading Platform?

    As a post-trade service provider of the mutual fund market, TDCC provides investors, sub-distributors, securities investment trust firms, futures trust firms, and master agents with onshore and offshore mutual fund transaction services while processing payment operations and information transmission in connection with subscription, redemption, switching, interest/proceeds, and liquidation etc..

  • 13.

    What is a Zero-Coupon Bond?

    A zero-coupon bond is a bond for which interest is not paid prior to maturity and the par value is repaid at the time of maturity. It is therefore usually issued at a "discount" of the par value. The discount is regarded as the interest paid to the investor.

  • 14.

    When was the bills and bonds depository and clearing system first implemented?

    The mechanism was effective on April 2, 2004.

  • 15.

    Can a bond holder use different bank accounts to collect repayment of the principal and payment of interest

    Yes. The bond holder may set up NTD bond principal and interest repayment accounts in different banks in the TDCC system. When the principal and interest is repaid, TDCC shall provide information to the principal and interest collection institution to process the payment of the principal and interest based on the accounts in the same banks specified by the bond holder and bond principal and interest repayment institution. This measure saves the interbank remittance fees for the bond holder. When the account number provided by the bond holder does not belong to the principal and interest repayment institution of the bond, the principal and interest repayment shall be processed based on the default payment account specified by the bond holder. Yes. The bondholder may set up repayment of the principal and payment of interest of NTD bond principal and interest repayment accounts number in different banks in the TDCC system. When the principal and interest is paid, TDCC shall provide the principal and interest payment institution the bank accounts numbers retained by the bondholder which is the same as institution to process the repayment of the principal and payment of interest based on the accounts in the same banks. This measure saves the interbank remittance fees for the bond holder. When the account number provided by the bond holder does not belong to the principal and interest repayment institution of the bond, the principal and interest repayment shall be processed based on the default payment account designated by the bond holder.accounts number in different banks in the TDCC system. When the principal and interest is paid, TDCC shall provide the principal and interest payment institution the bank accounts numbers retained by the bondholder which is the same as institution to process the repayment of the principal and payment of interest based on the accounts in the same banks. This measure saves the interbank remittance fees for the bond holder. When the account number provided by the bond holder does not belong to the principal and interest repayment institution of the bond, the principal and interest repayment shall be processed based on the default payment account designated by the bond holder.

  • 16.

    How does the investor process direct transfer, inheritance, or donation of bonds between private parties?

    Starting from December 25, 2015, the direct transfer, inheritance, and donation of fixed income between private parties for public offering bonds shall be operated by the participant who shall review related documents and operate the "bond transfer" transaction (transaction code C56) for account transfer operations. For private placement bonds, the participant shall operate the "direct account transfer/cancellation application between individuals" transaction (transaction code 375) or the "inheritance, donation, price offset by shares, and waiver of stocks account transfer/cancellation application" transaction (transaction code 376) for the account transfer.

  • 17.

    Once a bill purchased by the investor is due, can the due funds be transferred to an account designated by the investor?

    No. The due funds shall be directly transferred to the settlement account in the investor custodian bank originally used for the purchase of the bills. For example: When an investor purchases a bill, the payment is paid from Account A in Investor Custodian Bank A. When the bill is at maturity, it can only be paid to Account A in Investor Custodian Bank A.

  • 18.

    How do general legal entities (profit-seeking enterprises) match the withholding tax statement for short-term bills they receive and the trade confirmation slips?

    TDCC is the tax withholder for short-term bills. According to regulations in the "Regulation governing Issuance Registration, Central Deposit and Book-Entry Operations for Short-Term Bills" the short-term bills registered or deposited by the central depository institution shall be presented for redemption by TDCC on behalf of the holder. TDCC shall also withhold tax payments on the interest of the redeemed amount in excess of the initial issuance price in accordance with related regulations in the Income Tax Act. TDCC shall compile and send the withholding tax statement to the taxpayer before the 10th of February each year. The withholding tax statement is based on the amount of withholding taxes in the investor's account from the previous year. TDCC shall also provide a detailed statement of the interest income and withholding taxe for each individual bill. When the investor receives the withholding tax statement and detailed statement, the investor shall pay the taxe of the detailed statement based on the sum of the tax applicable to the pre-owner on the trade confirmation slips and the taxes for the period the investor held the bills.

  • 19.

    What is a government stripped bond?

    A government stripped bond is a bond where the "principal" and "interest" in an interest-bearing bond is separated. After the separation, the principal part is the "principal-only bond" (hereinafter referred to as "PO") and the interest part is the "interest-only bond" (hereinafter referred to as "IO"). Both can be traded independently and both are "zero-coupon bonds." No interest shall be paid prior to maturity and the par value is repaid at the time of maturity. The five-year government bond issued on the 20th of July each year is currently adopted. The fixed par value interest rate of 2% makes it a strip bond. As an example, once the par value of NTD 5 million of the A94106 Type A Phase 6 government bond is divided, it is divided into: 1.Principal-Only bond: A zero-coupon bond with a par value of NTD 5 million under the code P99G20 and set to mature on July 20, 2010.

    2.Interest-Only bond: (1). A zero-coupon bond with a par value of NTD 100,000 under the code I99G20 and set to mature on July 20, 2010.

    (2). A zero-coupon bond with a par value of NTD 100,000 under the code I98G20 and set to mature on July 20, 2009.

    (3). A zero-coupon bond with a par value of NTD 100,000 under the code I97G20 and set to mature on July 20, 2008.

    (4). A zero-coupon bond with a par value of NTD 100,000 under the code I96G20 and set to mature on July 20, 2007.

    (5). A zero-coupon bond with a par value of NTD 100,000 under the code I95G20 and set to mature on July 20, 2006.

  • 20.

    After the bond dealer submits the customer's bond passbook and discovers that there are discrepancies between the contents of the bond passbook and the transaction information, how should the discrepancies be processed?

    After the selling bond dealer submits the customer's bond passbook and discovers that there are discrepancies between the contents of the bond passbook and the transaction information, the selling bond dealer shall fill out the "bond passbook correction application form" and submit the original copy of the bond passbook to TDCC to apply for the cancellation of the bond passbook. If the dealer fails to provide the original copy of the bond passbook, the correction application form must be signed by the customer. The application form may be faxed to TDCC but the original copy of the application form and the bond passbook must be submitted within five business days after the application date. After TDCC reviews and verifies the information, it shall notify the selling bond dealer to reopen the bond passbook.