Newsletter
INSURANCE COMPANIES MAY APPLY TO ISSUE TDRS
To expand the market for the issuance of Taiwan Depositary Receipts (TDRs), the Securities and Futures Commission (SFC) recently announced that on acquiring status as foreign issuers, in-surance companies can apply with the regulatory authorities under the relevant regulations for permission to issue TDRs against their holdings of listed foreign securities. This applies both to Taiwan branches of foreign life insurance com-panies and to local life insurance companies.
The SFC stated that under the Guidelines for Handling the Offering and Issuance of Securities by Foreign Issuers, foreign issuers may apply to issue TDRs in Taiwan. If an insurance company with the status of a foreign issuer obtains a letter of consent from the foreign exchange business regulatory authorities, and a statement from the Taiwan Stock Exchange (TSE) or the ROC Over-the-Counter Securities Exchange that the foreign securities held by it comply with TSE or OTC listing conditions, it can then apply with the SFC to issue TDRs in Taiwan on the basis of its holdings of foreign securities. However, the securities underlying such TDR issues must be listed shares in their home country.