The Financial Supervisory Commission has amended and issued the Regulations Governing Futures Trust Funds in order to respond to the needs of futures trust enterprises in practice, to simplify the review procedure of futures trust funds, and to cope with the effective registration of futures trust funds pursuant to paragraph 1, article 84 of the Futures Trading Act revised in 16, January 2019. The amendments are outlined as follows.
1.In accordance with the amendment to paragraph 1, article 84 of the Futures Trading Act, it is stipulated that Filing and Effective Registration system is adopted for follow-on offerings of futures trust funds. Furthermore, the application period of effective registration, the documents required to be submitted with an application, the review procedure and the rules for the supplementation or correction of an application, and other relevant compliance matters are also prescribed in the amendment.
2.The provisions are enacted specifying: (1) the circumstances in which the competent authority may suspend the effectiveness of the registration for follow-on offerings of futures trust funds, (2) the conditions for the revocation of suspension, (3) the principle handling the situations in which a futures trust fund undergoes material financial or operational changes or the matters set out in the application documents are subject to material changes, (4) the causes for the competent authority to dismiss an application for effective registration of follow-on offerings, and (5) the circumstances under which the competent authority may void or revoke the effective registration.
3.The documents required to be submitted with the application of offerings differ from that with the application of follow-on offerings, and thereby they are stipulated separately in different articles. In addition, the requirement that when offering a futures trust fund to unspecified persons, the related documents shall also be submitted to the competent authority within five days after the date when payment for the beneficial certificates has been completed is canceled to simplify the related procedure.
4.The citations of article 100 of the Futures Trading Act, article 66 of the Securities and Exchange Act, article 61-1 of the Banking Act, and article 149 of the Insurance Act are revised to coordinate with the recent amendments thereof.
5.When a futures trust enterprise or its fund custodian discovers that the average net asset value per unit of a fund for the most recent three business days has fallen by a cumulative 40% or more from the initial net asset value per unit of the fund, it shall also immediately report the matter to the Taipei Exchange as the Financial Supervisory Commission has allowed futures trust enterprises to offer and issue over-the-counter index ETF in 6 August, 2018.
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