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Responsibility of Persons Responsible for Acts and of Trustees in Relation to Prospectuses or Investment Memoranda Under the Real Estate Securitization Act
Order Ref. Jin-Kuan-Yin-(IV)-0948010054 of 18 January 2005 of the Financial Supervisory Commission
The following is an interpretation concerning the responsibility of persons responsible for acts and of trustees in relation to prospectuses or investment memoranda under the Real Estate Securitization Act:
1. If there is any false representation or concealment in the required material content of a prospectus or investment memorandum provided under Article 15, or under Article 36 by the mutatis mutandis application of Article 15, of the Real Estate Securitization Act, the person(s) bearing criminal responsibility for the act under Article 59, subparagraph 1, of that same Act is limited solely to the person(s) who actually provided false information or concealed information. For any information provided by an originator, trustor, or other institution, and not provided by the trustee, the responsible person of the trustee is not deemed a person responsible for the act under Article 59, subparagraph 1, of the Act, unless the responsible person of the trustee knew of and participated in the providing of false information or concealed information.
2. If there is any false representation or concealment in the required material content of an investment memorandum provided by a trustee under Article 15, or under Article 36 by the mutatis mutandis application of Article 15, of the Real Estate Securitization Act, the trustee may, as stipulated in the real estate investment trust (REIT) or real estate asset trust (REAT) contract, be held responsible for compensation to bona fide counterparts only for damage arising specifically from false representation or concealment in trustee-related information or trustee activity-related information actually provided by the trustee; however, this restriction does not apply to a trustee of a REIT that manages and disposes of the trust assets itself. |