Title

Contractual Structure of Structured Notes and Legal Characterisation of Non-Discretionary Trust

Publication Type

Journal Article

Publication Date

1-2009

Abstract

This article argues that if a structured product is documented as “notes”, it should be deemed as “securities” under the Securities Exchange Act in Taiwan. It should be regulated issuance, purchase or brokerage activities under securities regulations, if a structured note is issued directly in Taiwan or if a domestic investor authorized a securities broker to have it purchased in a foreign country on his behalf,. In addition, even if one invests in structured notes issued by a foreign company via a non-discretionary trust with a commercial bank, this activity should still constitute sales of foreign securities; and thus it should require registration and/or authorization from competent authorities before issuance and a prospectus must also be provided. On this basis, we may further examine the regulation and conduct of business rules of promoting investment products by way of a non-discretionary trust under the name of wealth management.

Keywords

structured note, derivatives, security, non-discretionary trust

Discipline

Banking and Finance Law | Commercial Law

Research Areas

Commercial Law

Publication

Military Law Journal [軍法專刊]

Volume

55

Issue

3

First Page

111

Last Page

133

ISSN

0529-5483

Publisher

軍法專刋社, Jun fa zhuan kan she

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