1.Definition

  1. What is beneficiary securities?
    1. Financial Asset Beneficiary Securities: The document of title or certificate issued by the trustee of a SPT in accordance with the asset trust securitization plan, evidencing the beneficiaries’ interests in the trust property in terms of the principal or the profits, interest, or other proceeds accrued.
    2. Real Estate Beneficiary Securities
      1. Real Estate Investment Trust (REIT): REIT is similar to close-end fund, but the investment subject is real estate. The trustee raises a fund and delivers the beneficiary securities by means of public offering or private placement, and then invests in real estate, real estate-related rights, real estate-related securities, etc. The trustee has the right to use the funds for real estate business, and distribute the income to the beneficiary of the investment.
      2. Real Estate Asset Trust (REAT): REAT is a securities in the form of bond. The trustor transfers the rights related to real estate to the trustee, and the REAT is issued to non-specific persons through public offering or delivered to specific persons through private placement.

2.Issuance Market

  1. Financial asset beneficiary securities issuance and TPEx listing procedures
    1. Apply to the TPEx for the "TPEx Trading Approval Letter", and then apply to the competent authority for effective registration or application within 30 days, finally apply to the TPEx for listing.
    2. When applying for the TPEx listing, the application documents shall be inspected, and within 3 days after completion of underwriting, shall also submit a beneficial owner/securities holder distribution chart and agree with the TPEx on the TPEx listing date, such date to be not less than 3 business days after the date of its submission of the chart.
  2. REIT/REAT issuance and TPEx listing procedures
    1. Apply to the TPEx for the "TPEx Trading Approval Letter", and then apply to the competent authority for effective registration or application, finally apply to the TPEx for listing.
    2. Within 3 days after the competent authority's approval, submit an application form for TPEx trading of REIT or REAT beneficial securities. Within 3 days after completion of the sale, submit a beneficial owners distribution chart and agree with the TPEx on the listing date, which date shall not be less than 3 business days after the date of the submission of the chart.

3.Secondary Market

  1. If financial asset beneficiary securities for which TPEx trading is applied for under the TPEx Rules Governing the Review of Securities for Trading on the TPEx are debt-type financial asset securities, the trading method thereof shall be subject, mutatis mutandis, to the rules governing TPEx trading of corporate bonds and financial bonds. Trading of REAT beneficial securities for which TPEx trading is applied for under the TPEx Rules Governing the Review of Securities for Trading on the TPEx shall be subject, mutatis mutandis, to the rules governing TPEx listed corporate bonds and financial bonds.
  2. (2)Trading of REIT beneficial securities for which TPEx trading is applied for under the TPEx Rules Governing the Review of Securities for Trading on the TPEx shall be subject, mutatis mutandis, to the rules governing TPEx listed stocks.

4.Terms

Securities type Issuer Investor Property rights
Beneficiary securities Trustee Beneficiary Special Purpose Trust (SPT)
Asset-Backed Securities Special purpose company Holder Sell off

5.Information Disclosure

  1. Terms and conditions of issuance:To learn more about the terms and conditions of beneficiary securities, investors can visit the “Asset Securitization section” of the Market Observation Post System. (mops.tse.com.tw)
  2. (2)Trading Information:Investors can visit the “Bond Market Info” section of Taipei Exchange website.