Order Regarding the Application of Article 10, Paragraph 1 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners (Jin Guan Zheng Jiao Zi No. 1150383977)

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Order Regarding the Application of Article 10, Paragraph 1 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners (Jin Guan Zheng Jiao Zi No. 1150383977)

2026-10-15

Financial Supervisory Commission Order

Date of Issue: October 15, 2026 (Republic of China Year 115) Document Number: Jin Guan Zheng Jiao Zi No. 1150383977

This order is issued in accordance with Article 10, Paragraph 1 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners.
Trust institutions handling employee stock ownership trusts in accordance with the law, where the settlor is a foreign employee of a listed (over-the-counter) company, a first-listed (over-the-counter) company, or a related enterprise with controlling and subordinate relationships, may, in accordance with Article 10, Paragraph 1 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners, register as foreign institutional investors. They may, in accordance with the business regulations of the Taiwan Stock Exchange Corporation (hereinafter referred to as the Stock Exchange), submit relevant documents to the Stock Exchange to register domestic or overseas foreign employee stock ownership trust investment accounts, limited to one account each. Trust institutions handling overseas foreign employee stock ownership trusts must possess the qualification of a custodian institution as stipulated in Article 17 of the same Regulations.
The investment accounts mentioned in the preceding paragraph shall handle relevant matters in accordance with the following provisions:

(1) Trust institutions shall open accounts separately according to the company of the settlor of the employee stock ownership trust and the type of domestic foreign employees or overseas foreign employees.

(2) Investment accounts are only permitted to trade stocks of companies specified in the circular Jin Guan Yin Piao Zi No. 1120139151 dated September 23, 2023, issued by this Commission, and cannot engage in other securities trading transactions.

When trust institutions handle domestic foreign employee stock ownership trusts, they may trade stocks through domestic employee stock ownership trust accounts. For stock purchases, shares are transferred from the domestic employee stock ownership trust account to the domestic foreign employee stock ownership trust investment account, and such transfers may be conducted once per month; for stock sales, shares are transferred from the domestic foreign employee stock ownership trust investment account to the domestic employee stock ownership trust account for settlement.

(4) Participants in foreign employee stock ownership trusts may, upon mid-term or withdrawal applications, claim shares and transfer them to investment accounts opened by them in accordance with Article 10, Paragraph 1 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners, or to accounts opened with securities brokers that are restricted to selling only, in accordance with Article 77 of the Stock Exchange Business Rules or Article 46 of the Financial Supervisory Commission Securities Dealers Business Rules for Trading Securities, or dispose of shares through foreign employee stock ownership trust accounts and receive cash. However, participants who are directors, supervisors, managers, or shareholders holding more than ten percent of the total shares of listed (over-the-counter) or first-listed (over-the-counter) companies (hereinafter collectively referred to as insiders) shall not receive cash and shall file equity change reports in accordance with Article 25 of the Securities and Exchange Act.

(5) Trust institutions shall request listed (over-the-counter) or first-listed (over-the-counter) companies to provide a declaration stating that foreign employees participating in foreign employee stock ownership trusts are all overseas Chinese or foreigners in accordance with Article 3 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners, excluding employees with Mainland China nationality.

(6) If beneficiaries of current domestic employee stock ownership trusts already include foreign employees, trust institutions shall transfer their holdings to foreign employee stock ownership trust investment accounts within one year after the effective date of this order.

The following provisions shall apply to the remittance of funds involved in overseas foreign employee stock ownership trusts investing in domestic securities:

(1) Foreign exchange settlement of funds related to overseas foreign employee stock ownership trusts investing in domestic securities may be handled by trust institutions as foreign institutional investors, in accordance with Articles 6, Paragraph 2, 13, and 14 of the Regulations Governing the Investment in Securities by Overseas Chinese and Foreigners; their fund utilization and inventory data shall be declared to the competent foreign exchange authority by designated custodian institutions in accordance with Article 22 of the same Regulations.

(2) New Taiwan dollar accounts opened by overseas foreign employee stock ownership trusts in accordance with Article 18 of the same Regulations shall be used solely for the purpose of investing in domestic securities settlement.

This order takes effect from the date of issuance.

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Last updated: 2026-10-15

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Last updated: 2026-10-15

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