The Committee appreciates the attention paid by the Taiwan authorities to our 2021 White Paper suggestions. In particular, we were happy to learn of the positive response of the Ministry of Finance (MOF) to the request of custodian banks and tax guarantors to ensure the accessibility of FINI tax and earnings information on its online platform, thereby providing foreign investors with a more convenient investment environment. We are also grateful for the communication and assistance offered by the National Development Council and Financial Supervisory Commission (FSC) in connection to our other suggestions and wish to express our appreciation for the Taiwan authorities’ continuous focus on the sustainable development of Taiwan’s capital market and ambitious efforts in assisting Taiwan enterprises to align with international standards.
The Committee continuously focuses on optimizing the environment for foreign investment and increasing market efficiency, which will further facilitate globalization of Taiwan’s capital market. Given the changes and disruptions brought on by the pandemic, the Committee suggests appropriate deregulation to adapt to new work styles and arrangements and, in the spirit of public-private cooperation, we offer our assistance in further efforts to develop Taiwan’s capital market by providing the following suggestions.
Suggestion 1: Allow FINIs to use Taiwan securities as collateral for offshore financing activities.
Neighboring markets such as South Korea have recently adjusted their regulations to allow foreign investors to use the domestic securities they own as collateral for offshore borrowing. We recommend a similar approach in Taiwan by (i) removing the current prohibition in the FINI regulations on FINI-held securities being pledged as collateral, and (ii) allowing banks to be the local custodian for collateral agents, providing record-keeping services and handling securities as collateral in TDCC. Making this change would allow FINIs to more effectively utilize the Taiwan securities they own as collateral, increase the attractiveness of Taiwan’s market to overseas investors, improve market efficiency and liquidity, and increase market stability.
Suggestion 2: Allow FINIs to appoint multiple Taiwan custodians.
In current international practice, foreign investors may appoint more than one global custodian when more than one custodian is needed to operate portfolios so as to create segregated accounts managed by different managers. However, current Taiwan regulations prohibit FINIs from appointing more than one Taiwan custodian, which inhibits efficient creation of segregated accounts and use of multiple managers.
We therefore recommend that Taiwan follow the example of other Asian countries such as South Korea and India, which, like Taiwan, have adopted ID account mechanisms but do not prohibit the appointment of more than one domestic custodian.
Suggestion 3: Take steps to improve the efficiency of Taiwan’s capital market.
We recommend the following steps to improve capital market efficiency:
3.1 Enable flexible working environments to reflect the lessons learned from the COVID situation and support staff wellbeing, as well as to facilitate efficient implementation of business continuity plans (BCP), including arranging for staff to work from home and allowing industry participants connecting to the Taiwan Stock Exchange (TWSE), TDCC, Central Bank (CBC), and other government entities to use flexible IP addresses with safe identification and authentication processes as a replacement for fixed IP addresses or TWCA cards and card readers to facilitate connection to internal networks.
3.2 Replace the current system requiring custodians to hold a separate chop for each FINI, with a system where each custodian bank’s specific digital signature or chop can be used for investment-related fund subscription/redemption application forms, securities settlement, corporate events, and account opening.
3.3 Amend Article 92 of the Income Tax Act or issue a ruling letter to facilitate e-receipt of tax-withholding certificates issued by tax withholders or their company registrars.
3.4 Remove the requirement that FINIs holding delisted shares for over one year apply for foreign investment approval (FIA) status from the Investment Commission. Because such investments were initially made in exchange-listed securities in accordance with the “Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals,” such FINI status should be continued upon delisting so as to avoid costly regulatory processes that are seen by FINIs as being punitive and discouraging to long-term investment in Taiwan.
3.5 Review existing banking, securities, and futures regulations requiring a minimum of three hours of training for personnel in these sectors. Such intensive training is not necessary for staff who are already familiar with the topic of the training. Thus, the Committee proposes adding the option of waiving training or reducing the minimum requirement to 30 minutes or one hour for staff who have passed an internal exam.
3.6 Instruct district tax bureaus to use the non-resident tax data stored in the MOF’s eTax Portal to review tax refund applications from FINIs, instead of the current practice of requesting FINIs’ tax agents to submit originals or photocopies of withholding statements to apply for refunds. Such a submission practice involves a lengthy and complex process that wastes paper and is environmentally unfriendly and can easily be avoided given that the relevant data is already stored in the eTax Portal when reported by tax withholders. Using this stored data would improve the efficiency and accuracy of the tax bureaus’ review and approval of refund applications.
3.7 Increase the bandwidth of the MOF’s eTax Portal so as to allow FINI-appointed tax guarantors and custodians to access and download all of their clients’ tax and earnings information at the same time for subsequent processing.
3.8 Amend Article 2 of the “Regulations Governing the Use of Proxies for Attendance at Shareholder Meetings of Public Companies,” which limits proxy forms to those printed and issued by the companies, to allow companies to issue shareholder meeting notices by electronic means. Such an amendment would align with the April 8, 2022 ruling issued by the Ministry of Economic Affairs clarifying that prior consent for shareholder meeting notices to be sent by electronic means may be given by shareholders through passive receipt by the company without the need to actively obtain shareholder permission.
Suggestion 4: Permit registered overseas professionals of foreign securities firms to work temporarily in Taiwan either during emergencies or as part of the “new normal.”
Since the COVID-19 pandemic began, businesses throughout the world have sought alternative workplaces to relocate their staff in order to boost resiliency. In addition to work-from-home (WFH) arrangements, companies are also exploring “work-from-anywhere” models. For example, it should be permitted for Hong Kong employees of a securities firm to be temporarily relocated to the firm’s Taipei branch or affiliate if a business interruption event like the one in Hong Kong occurs, without having to comply with the work permit and/or businessperson registration requirements that would be in effect for the Taipei branch or affiliate to hire its own full-time employees. Given that these professionals conduct non-Taiwan business regulated by the Hong Kong authorities and are properly registered there, the FSC should have no concerns with their being physically located in Taiwan so long as such individuals do not engage in onshore marketing of offshore products.
This “work-from-anywhere” practice is common in developed financial markets like Hong Kong and Singapore and could be implemented in Taiwan by permitting simplified temporary registration of relocated staff or requiring that they report to Taiwan’s financial regulators after completion of their activities.
The benefits of this approach include:
- Creating better visibility of Taiwan among global financial institutions as a viable location for implementing a BCP.
- Moving Taiwan closer to being a regional financial hub.
- Allowing Taiwanese staff working at the regional subsidiaries of Taiwanese financial institutions to return to Taiwan for a period for family reasons.
Suggestion 5: Establish a single clearinghouse system to achieve delivery versus payment and netting cash settlements.
Taiwan is one of only a few major securities markets that has yet to establish a single clearinghouse system. The lack of such a system increases settlement risks by causing a lag in cash and securities settlements and creates extra funding costs through the need for settlement with different brokers on the same settlement date. We urge the securities authorities to seriously consider this request as a way to improve operational efficiency in securities markets and align Taiwan with international trends.
委員會感謝台灣各監管機構對《2021台灣白皮書》所提建議之重視。我們欣見財政部積極回應外資保管銀行及稅務代理人之需求,提供外資更便利的投資環境。我們也誠摯感謝國家發展委員會與金融監督管理委員會就本委員會所提建議之溝通與協助。委員會肯定台灣主管機關持續關注資本市場之永續議題,以及就協助台灣企業接軌國際的決心與努力。
委員會持續關注優化外資投資環境,以及增進市場效率等議題,期待進一步促進台灣資本市場的國際化。另因應疫情發展,建議適當的法規鬆綁,以配合新的工作型態。基於公私部門合作之精神,委員會樂於參與並進一步對台灣資本市場的發展貢獻心力,謹提供以下建議:
建議一 : 准許外資得以台灣上市上櫃有價證券做為其海外投資活動之擔保品
鄰近國家如南韓,最近修正法規,允許外國投資人就其海外投資,得以國內有價證券作為擔保品。委員會建議台灣採取以下作法:(1)准許境外華僑及外國人(FINI)得以台灣上市上櫃有價證券做為其海外投資活動之擔保品;(2)允許銀行可做為擔保品管理者之保管銀行,於集中保管結算所開立擔保品專戶提供外資有價證券之撥轉並提供外資擔保品明細紀錄之服務。上述做法得以協助外資有效運用台灣有價證券作為擔保品,藉此吸引更多外資增加對台灣投資部位,進而改善市場流動性,並增加金融市場的穩定性。
建議二:准許外資得以指派一個以上之保管銀行
現行國際實務運作外資可指派一個以上之全球保管銀行及基金經理人進行投資管理,故需分別指派不同之次保管銀行進行分帳管理及操作;台灣現行規定外資僅能在台指派一個保管銀行,確實造成全球保管銀行機構實務運作之困擾與不便。
委員會建議應採行鄰近國家(如韓國及印度)之作法,採ID帳戶機制,但不限制外國投資人僅能指派一個保管銀行。
議題三:增進市場作業效率
委員會建議採取以下措施,增進資本市場的效率。
3.1 准許彈性工作環境,以支援疫情所需、員工居家工作福祉,並與業務突發狀況之備援作業安排,如居家辦公;證交所、集保公司、央行等政府機構允許更有彈性與兼具安全性的網路認證方式,取代現行許多平台均要求使用固定IP或是台網實體卡片(須配合讀卡機)進行系統連結認證。
3.2 准許外資以保管銀行之電子簽章或專戶章取代個別外資專用章進行投資交易相關之基金申購贖回,證券交割股東事務,開戶作業等等。
3.3 修改《所得稅法》第92條或頒布函令,以促進扣繳義務人或其股務代理機構取代紙本扣繳憑單印製,並以電子化扣繳憑單發放予股東。
3.4 因外資投資乃依據《華僑及外國人投資證券管理辦法》規定進行,建請取消外資持有下市證券一年以上需取得投審會核可之規定,避免高額法遵成本,及使外資認為現行規定為懲罰外資,而減少外資長期投資。
3.5 目前銀行、證券及期貨法規上的訓練時數均以三小時為基本單位,然對已熟悉訓練主題之員工實無必要。建議增加在有內部評量測驗情形下,豁免或減少訓練時數至半小時或一個小時。
3.6 建請各區國稅局運用財政部稅務入口網之非居住者所得資料,審理外資退稅案件。就現行退稅作業,國稅局要求外資之稅務代理人提供扣繳憑單正本或影本進行退稅申請;該等代理人需向外資之保管機構調閱扣繳憑單正本或影本,流程繁複及耗時,耗費紙張亦不環保。該稅務網之資料與扣繳義務人之申報相同,運用其資料可促進國稅局審核作業。
3.7 建請財政部增加稅務入口網之頻寬,以利外資稅務代理人及保管銀行業者一次性下載其所有受指派之外資相關稅務資訊,以利後續作業。
3.8 建請修改《公開發行公司出席股東會使用委託書規則》第2條有關公開發行公司出席股東會使用委託書之用紙,以公司印發者為限之規定,以利公開發行公司以電子方式傳送股東會召集通知。該修正將得以落實經濟部民國111年4月8日經商字第11102402800 號函,有關公司毋須以主動徵詢方式,向所有股東徵詢,而得以被動受理等方式取得相對人同意,以電子方式傳送股東會召集通知之見解。
建議四:在緊急或「新常態」情形下,准許在外國證券公司註冊之專業人士得以暫時在台執行國外辦公室之職責
自COVID-19疫情開始,各國企業為保持運作彈性,紛紛在為員工找尋替代的工作場所,除了讓員工在家工作以外,可在「任何地點」工作的模式也已被採納。例如,在疫情較嚴重時,應允許在香港證券公司工作的員工,可以不須申請工作許可,可暫時到台北分公司或子公司進行遠端工作。由
於該專業人士係從事是已在香港合法註冊並受到香港的主管機關的監管之業務,對台灣的金管會而言,其實無須擔憂這些跨國工作者從事不合規的跨境商業行為,例如在未經許可的情況下銷售外國產品給台灣的客戶。
可在「任何地點」工作的模式在其他成熟金融市場(例如香港或新加坡)已相當普遍,委員會建議台灣亦可跟進,並可實施臨時證照登記,或事後向金融主管機關申報的配套機制,
該工作模式的好處包含:
1. 在企業維持營運的情況下,使台灣在全球金融市場中,成為一個開放給外國企業員工於台工作的國家,可增加國際上能見度。
2. 台灣可向區域金融中心的目標,更往前邁進一步。
3. 在台灣金融業之國外子公司工作的台灣人,得以暫時回台工作並兼顧家庭。
建議五:設立單一款券結算機構以達成同步款券及淨額交割
在主要證券市場中,台灣仍為少數尚未成立單一款券結算機構之國家,導致產生時間差異之款券交割風險,以及需與不同券商於同一交割日進行款券交割所增加之額外資金成本。委員會盼望證券主管機關慎重考慮此要求,以提升台灣證券市場之作業效率並與國際接軌。
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