Regulations Governing Permission and Administration of Securities and Futures Business Dealings and Investment Between the Taiwan Area and the Mainland Area Article 42

A Mainland-area securities or futures institution or a Mainland-invested securities or futures institution may apply for foreign exchange settlement for interest or earnings distributions it receives each year from its investments.When a Mainland-area securities or futures institution or a Mainland-invested securities or futures institution has received permission to transfer shares or to reduce its investment in an investee Taiwan-area securities or futures institution, it may apply for a single foreign exchange settlement for the full amount of the investment amount approved by the competent authority; the same shall be true for capital gains on its investment.When a Mainland-area securities or futures institution or a Mainland-invested securities or futures institution is entitled to make a foreign exchange settlement pursuant to these Regulations, that right may not be transferred, provided that this restriction shall not apply when permission is granted subsequent to consultations between the competent authority and the Central Bank of the Republic of China (Taiwan).