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.

To use the system, the issuer/master agent shall submit relevant contract and application forms to TDCC. If the issuer/master agent adopts the Secret File Transfer protocol (referred to as the “SFTP” hereunder) to process information reporting and product registration, it shall also submit the system SSH File Transfer Protocol connection application form to TDCC for the application.

The requirements for computer hardwares and softwares including 1GB RAM and 100MB HDD space on the PC, a printer, Windows 7 or above, IE 11.0 or lower, and an Internet connection. A issuer/ master agent shall establish the SFTP Client to connect TDCC’s SFTP server.

The issuer/master agent shall use the digital certificate issued by the TAIWAN-CA Inc. to log onto the system. When the SFTP is adopted, the issuer/master agent shall use the "account number + password + IP (firewall) settings" to log onto TDCC’s SFTP server.

The codes are compiled jointly by TDCC and the issuer/master agent. The 12-digit code includes 6 digits of issuer/master agent’s institutional code (excluding the English letters) + 6-digit serial number (compiled by the issuer/master agent).

The codes are authorized by TDCC. The 8-digit code starts with A which is followed by 7 digits [the method for compiling the 7 digits (banks: 3-digit code of the financial institution + 0000; securities firms: 3-digit code of the head office + 0000; insurance companies: 3-digit code of the financial institution + 0000]

The issuer/master agent can revise it’s institutional information through the system, including institution’s English name, address, website , contact person, and contact number. Revision of the English name, address and website shall become effective once approved by TDCC. .