Offshore Structured Products

To enhance the transparency of offshore structured products market and better protect the interests of investors, the Financial Supervisory Commission promulgated the Regulations Governing Offshore Structured Products on July 23, 2009 and instructs TDCC to construct an information transmission system (https://structurednotes.tdcc.com.tw) (referred to as the “System” hereunder), through which, issuers/master agents can report and post related information.

Introduction

Operation Principles

  1. Users connect onto Offshore Structured Notes Market Observation Post System through Internet using their PCs.
  2. The System provides the statistical data on structured products reviewed and approved by the Central Bank, the competent authorities and trade associations and related query services.
  3. Once information is entered onto the reporting platform, system will automatically direct to another platform for posting after review by supervisor.
  4. The System offers both single and multiple data entries and uploading. 圖片

Reporting and Posting Operation

  1. Where the product is not limited specifically to professional investors for trust investment or sales, the issuer/master agent shall post relevant information at least two business days before the sale of product starts.
    1. Issuers/master agents shall, on each business day, report the names of offshore structured products that they issue or distribute and the aggregate amounts of 132 confirmed purchases or redemptions on the previous business day via the System.
    2. Issuers/master agents shall post on each business day the reference prices on the offshore structured products they issue or distribute via the System.
    3. Issuers/master agents shall produce monthly reports for the offshore structured products they issue or distribute in a format and with the content prescribed by the FSC, and within 10 days after the end of each month, report the same information to the FSC and the Central Bank via the System.
    4. Issuers/master agents shall post the latest CPA-audited financial report of the issuer and its Chinese translation via the System.
    5. When the product an issuer/master issues or distributes has an event that requires posting in accordance with the Regulations Governing Offshore Structured Products, the issuer/master agent shall post the type of information, name of issuer/guarantee institution/product, information of the reporting party, date of event, and the nature of the event via the System.
    6. Issuers/master agents shall upload the electronic files of the product prospectus and investor brochure onto the System during the prescribed time period.
    7. Issuers/master agents should post information on the dividends on a product via the System. ,

Secure File Transfer Protocol (referred to as the “SFTP ” hereunder)

SFTP enables the issuers/master agents to transfer data over a secure shell (ssh) data stream. It helps in ensuring that the data is transferred with security, efficiency and privacy. This service was highly appreciated by the issuers/master agents since October 2018.

As at the end of December 2019, there were 27 ,213 offshore structured notes issued and traded in Taiwan financial market. From October 2018 to December 2019, UBS and Societe Generale, the top two issuers, has issued over 3,107 offshore structured notes and completed over 0.4 million data filing through the very secured SFTP. 圖片

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Regulations Announcement
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