OSU services
For offshore securities units (OSUs), applicable regulations are established in accordance with the tax regulations governing offshore banking units (OBUs). Authorized securities firms are permitted to establish OSUs in the Republic of China to operate within the professional business scope of securities firms to draw domestic investors back from overseas markets and make effective use of the capital and credit of parent securities firms in the country in order to increase the number of participants in international financial and securities services.
SinoPac Securities created an offshore securities unit (OSU) in May 2014 to conduct offshore securities business, including brokerage, wealth management, underwriting, and proprietary trading of foreign currency denominated securities or foreign currency denominated financial instruments, as well as other securities-related foreign exchange business approved by the competent authority.
Target customers
- Offshore investors: Natural persons, juristic persons, government entities, or financial institutions (collectively referred to as nonresidents) outside the territory of the Republic of China.
- Domestic investors: Professional investors (natural persons or juristic persons) or financial institutions (designated foreign exchange banks or offshore securities units).
Notes:
1.The qualifications of professional investors shall comply with regulations of the Financial Supervisory Commission.
2.Investors are not protected by the Financial Consumer Protection Act.
Business Scope
- Selling foreign currency financial debentures or other certificates of debt issued by headquarters.
- Conducting commission agency, brokerage, and agency business of foreign currency denominated securities, or other foreign currency denominated financial instruments approved by the competent authorities.
- Conducting borrowing or lending of funds in connection with securities business; and buying and selling of foreign currency denominated securities or other foreign currency denominated financial instruments approved by the competent authorities.
- Underwriting of securities issued outside the territory of the Republic of China.
- Conducting account custody, agency, and consulting business related to the businesses specified in the subparagraphs above.
- Conducting consulting related to asset allocation or financial planning, and sales services in connection with foreign currency denominated securities or other foreign currency denominated financial instruments approved by the competent authorities.
- Conducting business involving other foreign currency denominated derivative financial instruments.
- Trading across foreign currencies on behalf of securities service customers.