Taiwan Financial Supervisory Commission (FSC) Announced that Custodian Banks Could Collect Foreign Currency Cash Dividends on Behalf of Foreign Institutional Investors (FINI) to Promote Capital Market Internationalization

April 21, 2026

To further promote the internationalization of Taiwan’s capital markets and to provide a more investor-friendly environment for foreign investors, the Financial Supervisory Commission (FSC), after taking into account international practices and relevant stakeholders’ views, will issue a ruling pursuant to the Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals. The ruling will explicitly allow custodian institutions designated by offshore overseas Chinese and foreign investors to collect foreign currency cash dividends distributed by listed, OTC-listed, and Emerging Stock Board (ESB) on their behalf.

The FSC further stated that such custodian institutions may, in accordance with investors’ instructions, remit the relevant funds to foreign investors’ designated offshore foreign currency deposit accounts or to their foreign currency deposit accounts maintained with domestic financial institutions.

The FSC noted that Taiwan’s industries are predominantly export-oriented, and many companies maintain foreign currency positions. In addition, foreign investors currently hold over 45% of the total market value of Taiwan’s securities market. This amendment is expected to meet foreign investors’ demand for receiving dividends in foreign currencies, while also reducing the need for issuing companies to conduct foreign exchange conversions and related administrative procedures when distributing cash dividends. The measure will help create a more diversified and investor-friendly international investment environment and further align Taiwan’s capital market with global practices.

The FSC has also instructed the Taiwan Depository & Clearing Corporation (TDCC) to study and establish reconciliation and control mechanisms for companies intending to distribute foreign currency cash dividends to offshore overseas Chinese and foreign investors. The system is expected to be launched in the third quarter of 2026.

The FSC will continue to review and enhance capital market-related systems and regulations, with the aim of building a more competitive and internationalized investment environment and promoting the long-term development of Taiwan’s capital market.

Contact Unit: Securities Trading Division, Securities and Futures Bureau
Tel: +886-2-2774-7310
For inquiries, please contact: FSC Public Mailbox

Translated by inFINIty Consulting Inc.

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