According to Item 2, Paragraph 1 of Article 11 of the SITCA, a securities investment trust enterprise may carry out a private placement of beneficial interest certificates to qualified natural persons, juristic persons or funds.
By a letter dated October 19, 2017, the FSC amended the qualifications of the subscribers of the private placement as follows:
(1) In the case of natural person subscribers: the minimum requirement of NT$15 million asset that a natural person put in the private placement institution or delegated institution may include the amount of deposits and other investments, and no longer limited to discretionary or fund investments.
(2) In the case of trust enterprise subscribers: the original requirement that the value of the trust asset contracted pursuant to the Trust Enterprise Act shall exceed NT$ 50 million was amended to that the settlor of the trust asset must meet the qualification requirements for natural person subscribers, legal juristic person subscribers or fund subscribers set forth in the amended regulations, as the case may be, and
(3) the private placement institutions or delegated institutions shall include in their “know your customer” procedure the evaluation method of the subscriber’s knowledge over the financial products and trading experience, and shall submit the same to the board of directors for approval.
Said amended regulations became effective on January 2, 2018.
For further information, please contact:
Queenie Chen,Tsar & Tsai Law Firm
law@tsartsai.com.tw
