Chapter 3 Detailed Provisions – Operation and Management of Foreign Exchange Business
Section 1 Securities Related Business Involving Foreign Exchange
Subsection 9 Private Placement of Offshore Funds business
Article 39
When a securities enterprise intends to act as the local mandated agent of an offshore fund institution and conduct private placement to specified counterparties (hereinafter referred to as “offshore fund private placement business”), the securities enterprise shall apply to the Bank for approval by submitting documents provided in Article 7 herein, and in addition, the following documents:
1.A statement to comply with the provisions in Article 52 of the “Regulations Governing Offshore Funds”. Such statement is not required if the counterparties are entities provided in Subparagraph 1, Paragraph 1, Article 52 of the Regulations.
2.Business plan (including business profile, primary information of the offshore fund, operating process and receipt/payment procedure).
Article 40
When a local mandated agent of a privately placed offshore fund purchases fund shares from the offshore fund institution, it shall do so in the name of the counterparty, and the receipt/payment for settlement and fees shall be made in the denominated currency of that fund.
When the agent reports to the institution designated by the FSC within five (5) days from the date that the price of the privately placed offshore funds has been paid in full, it shall notify the Bank.