The update directly addresses custodial services for handling equity dividends (cash flows from stock ownership) and settlement of dividend payments to overseas investors, which falls squarely within the Equities category's Strong Yes criteria for settlement and custody of equity instruments.
Mandatory inheritance: Equities as the primary tag automatically triggers Investment Services as the secondary tag, and the custodial and asset-handling functions for foreign currency dividend processing reinforce this parent category.
Specialism
The update concerns regulatory authorization for custodians to process and remit foreign currency dividends, which involves safeguarding of client assets and segregated account management for overseas investors.
Mandatory inheritance: Safeguarding is a child of Governance, so Governance must be raised as the secondary tag.
TITLE: Taiwan's Financial Supervisory Commission Permits Custodians to Process Foreign Currency Dividends for Overseas Investors
BODY:
On April 21, 2026, Taiwan's Financial Supervisory Commission (FSC) Securities and Futures Bureau announced that it will issue an order permitting custodian institutions to act as agents in collecting foreign currency cash dividends on behalf of overseas Chinese nationals and foreign investors.
Under the amended regulations based on the "Regulations Governing Investment in Securities by Overseas Chinese and Foreigners," designated custodians will be authorised to receive foreign currency cash dividends distributed by listed, over-the-counter, and emerging stock companies. Custodians will also be permitted to remit these dividend payments to overseas investors' designated offshore foreign exchange deposit accounts or their domestic foreign exchange deposit accounts maintained with local financial institutions, in accordance with investor instructions.
The FSC stated that the amendment addresses the needs of foreign investors, who currently hold more than 45 percent of the market capitalisation of Taiwan's securities market. The measure aims to accommodate foreign shareholders' preference for holding foreign currency dividends and reduce foreign exchange conversion requirements and administrative burdens for issuing companies. The FSC noted that many Taiwanese enterprises operate in export-oriented industries and maintain significant foreign currency positions, making this amendment strategically important for internationalising Taiwan's capital market and enhancing its competitiveness.
The FSC has directed Taiwan Depository & Clearing Corporation to develop reconciliation and control mechanisms for companies wishing to distribute foreign currency cash dividends to overseas investors. These systems are expected to be operational by the third quarter of 2026 (Q3 2026).