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A master agent representing, for example, three fund houses, faces a dilemma when more than one of the managers files a fund for approval. Recent Developments On February 6, 2013, the FSC announced a series of long-term measures to encourage the offshore fund industry to expand its operations and improve the quality of services. In addition to relaxing the staffing rules for master agents, the FSC has committed to expedite audits for new fund registrations and waive derivatives limits and has increased the number of new registrations that a master officer can file at the same time to three. We believe that a successful implementation of these measures will enhance Taiwan`s attractiveness as a market for offshore fund products. It is expected to be implemented on 1 January 2016, a reduction to 50 per cent of the amount of Taiwanese securities that can be held in an offshore fund registered, compared to 70 per cent currently, of the NAV, and a reduction in the NAV PERCENTAGE of an offshore fund held by Taiwanese investors to 50 per cent, from 70 per cent currently. While they may be seen as additional restrictions, the FSC believes they will encourage offshore fund managers to bring more diversified products to market. “They thought they could do it themselves and save money, but it showed they couldn`t do it,” he said, adding that the previous master`s officer had a considerable number of employees with access to a number of distributors. Withdrawal of registration The offshore fund may request the withdrawal of its registration and the cessation of the sale to Taiwan. In such cases, the master agent must continue to ensure that Taiwanese investors are able to recover their holdings and continue to receive statements and other information in a timely manner. If, following a withdrawal of registration, the FSC does not maintain sufficient onshore support, it may lead to FSC regulatory action and significantly affect the offshore manager`s ability to register investment funds in the future. Registration Authorization The master agent, not the offshore fund manager, files applications with SITCA. After verification by SITCA, the application of the Financial Supervisory Commission, the Securities and Futures Bureau, is forwarded to the Securities Investment Trust and Consulting Division for approval.

In reality, the offshore fund manager, together with his external consultant, will prepare the applications on behalf of the master agent. A master agent does not limit himself to acting on behalf of a single offshore fund manager, although the parties may approve it contractually. The amount of the master agent`s remuneration is subject to commercial negotiations between the fund manager and the master agent, although the amounts, types (related to sales, marketing budget, etc.) and the base (e.g.B.