Disclosure Requirements - Taiwan

19.09.2014

Disclosure category: 1

Markets where disclosure by CBL to issuers and/or to regulators or market authorities is mandatory under applicable law.

In the case of holdings in Taiwanese international bonds, Clearstream Banking S.A. (CBL) may fall under a legal obligation to disclose the identity and/or holdings of its customers.

Consent

In order to comply with the legislation as mentioned below, customers entering into transactions in the Taiwanese international bonds market consent and are hereby deemed to consent to disclosure and to the appointment of the requestor (for example, the Financial Supervisory Commission (FSC), the listed company or its agent) as their attorney-in-fact, under power of attorney to collect from CBL such information as is required to be disclosed.

Customers not willing to give this consent cannot hold such securities and/or financial instruments in their account with CBL.

Monthly report

CBL will disclose to the Taiwan Depository & Clearing Corporation (TDCC), at the CBL account level at TDCC, the aggregated holdings of residents and non-residents of Taiwan (at security level) based on the declaration provided in the customer's settlement instructions, as indicated on the Creation Link Guide - Taiwan. TDCC will then disclose these holdings to the Central Bank of the Republic of China (Taiwan) (CBC).

The identity of the final beneficial owner is not disclosed in the monthly report.

Ad-hoc report

The FSC may also request, on an ad-hoc basis, the disclosure of additional details, including but not limited to those listed in Article 23 of the Regulations.

Such request for disclosure will typically be issued by the FSC to CBL, who will in-turn request the required information from customers and their final beneficial owners.

Background and legal basis

In accordance with Article 4.1 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals dated 11 February 2014 issued by the Financial Supervisory Commission (FSC) (the “Regulations”), the memo 1030009933 issued by the FSC, dated 25 March 2014 (the “FSC Memo”) requires that TDCC disclose information pertaining to the international central securities depository participants and to provide this information to the CBC.

Further to the FSC Memo,  the CBC requires TDCC to submit to the CBC, by the 10th of the following month, a report (at security level) containing the aggregated holdings in CBL (as holder of the TDCC’s account) of Taiwanese international bonds by residents and non-residents of Taiwan.

Sanctions

Article 38 of the Regulations states that:

“Overseas Chinese and foreign nationals found in violation of these Regulations or other relevant acts and regulations shall be punished in accordance with applicable acts and regulations.”

These sanctions include but are not limited to administrative sanctions.