| Chapter 4 Standards of Practice for Collective Trust Fund Business |
Section 1 Beneficiary Rights |
| Article 19 |
A trust enterprise may substitute the issuance and transfer of beneficial securities with the production and book-entry transfer of other documents representing beneficiary rights.
A beneficiary who intends to exercise beneficiary rights shall do so based on the beneficial securities held or other documents representing beneficiary rights.
With respect to the negotiability of collective trust fund beneficiary rights, a beneficiary may, according to the methods stipulated in the collective trust fund agreement, transfer beneficial securities or other documents representing beneficiary rights to a third party, or request the trust enterprise to terminate the agreement. |
| Article 20 |
A trust enterprise shall calculate the net asset value of the collective trust fund in accordance with applicable laws and regulations and generally accepted accounting principles.
The Trust Association shall draft standards for calculating the net asset value of a collective trust fund and submit such standards to the competent authority for approval.
A trust enterprise shall publicly announce every business day previous day's net asset value per beneficial unit of the fund. However, where the fund utilization falls under Subparagraph 6 or 13, Paragraph 2 of Article 23 herein, the net asset value calculation period and required public announcement deadline may be stipulated in the collective trust fund agreement, provided that it may not be longer than 6 months. |
| Article 21 |
The beneficial securities of a collective trust fund issued by a trust enterprise shall be certified. Certification matters shall be governed by the mutatis mutandis application of the Regulations Governing Certification of Corporate Stock and Bond Issues by Public Companies.
The beneficial securities referred to in the preceding paragraph shall be given serial numbers and record the following information:
1. Name, number of beneficial units, date of issuance, and duration of the collective trust fund, and whether or not additional issues are permitted.
2. Name and address of the trust enterprise.
3. Name of the beneficiary and number of beneficial units held.
4. Price, fees, and tax obligation per unit issued.
5. Methods by which trust proceeds will be calculated and paid upon termination of the trust agreement by the beneficiary.
6. Method for the transfer of beneficiary rights.
7. Method for the calculation and public announcement of the net asset value per beneficial unit.
8. Methods by which trustee remuneration is calculated and paid.
9. Other information as required by the competent authority. |
| Article 22 |
The beneficial securities of a collective trust fund may be transferred by endorsement of the beneficiary, provided that where the trust enterprise is not notified of the name or title of the transferee, the transfer shall not be valid as against the trust enterprise. |