Newsletter
CONDITIONS FOR EXEMPTION FROM SECURITIES REGISTRATION REQUIREMENTS RELAXED
In order to expand the international bond market, on 11 February 2010, the Financial Supervisory Commission relaxed the conditions to qualify for exemptions from Article 22 of the Securities and Exchange Act. If the issuer is wholly-owned by a foreign national government or if a foreign national government guarantees 100% of the issuer's debts, and the credit rating of the issuer or the bonds to be issued is not lower than Taiwan's sovereign credit rating (currently A), an issuance of ordinary corporate bonds may be exempted from registration procedures provided under the Regulations Governing the Offering and Issuance of Securities by Foreign Securities Issuer. To protect investor interests, the Commission does not exempt foreign issuers from disclosure obligations, such as maintaining transparency during underwriting and making available prospectuses and financial reports.