FRANKLIN TEMPLETON FUND SERIES Dealing Guide for Intermediaries
Table of Contents Background 2 Contact Information 2 General Information 3 Dealing Information 3 How to Purchase Units 4 How to Redeem Units 5 Payment of Redemption Proceeds 5 Dividends 5 Confirmation/Details of Deals & Periodic Statements 5 How to Amend Registration Details 5 Commissions 6 Holidays 6 Appendix A: Payment Instructions 7 Appendix B: General KYC documentation requirement for Financial Institution 8 www.franklintempleton.com.hk page 1 of 8 DG QFII HK EN 06/18
Background Overview Purpose of this document This Dealing Guide provides key information and assistance to enable you as our client to deal smoothly and efficiently in the Franklin Templeton Fund Series funds registered in Hong Kong and Singapore: HONG KONG SINGAPORE Templeton China Opportunities Fund USD Templeton China Opportunities Fund HKD Templeton China Opportunities Fund USD This document only applies to our intermediaries. If you require assistance, please contact your local Franklin Templeton Client Services team. Note: Some lists in this guide are subject to change. For up-to-date information, please check our website or contact your local Client Services team (please refer to section Contact Information ). Disclaimer This Guide is not a legal document. All financial, non-financial transactions, and business arrangements are primarily governed by the current Fund documentation (i.e. Explanatory Memorandum, application form) and any applicable terms of business agreed. In the event of any inconsistency between the contents of this guide and the Fund documentation and/ or terms of business, the latter will prevail. Contact Information Client Services: Roles and Responsibilities Citicorp Financial Services Limited, a company incorporated with limited liability in Hong Kong has been appointed to provide the Registrar and Transfer Agency services will handle your daily transactional related questions such as: 1. Acknowledge receipt of application and Transaction confirmation report 2. Status of Redemption & Commission payments 3. Statement of Accounts 4. Any other administrative/operations related queries All transaction instructions for subscriptions and redemptions should be duly signed by the authorised personnel and directed to Citicorp Financial Services Limited via fax +852 3141 4182. Citicorp Financial Services Limited executives are available Monday to Friday (excluding Hong Kong Holidays) from 9:00 to 18:00 Hong Kong time to assist you. Contact Information: Citicorp Financial Services Limited 9/F, Citi Tower, One Bay East 83 Hoi Bun Road, Kwun Tong Kowloon, Hong Kong Email Address: hkta@citi.com Fund Dealing Fax Number: +852 3141 4182 Investor Hotline: +852 2306 6088 Fund Prices & Marketing Information Please visit this website www.franklintempleton.com.hk for Fund prices and marketing information. The Fund prices are also published on the South China Morning Post and Hong Kong Economic Times. The Fund price will be available by 09:00 on T+1. www.franklintempleton.com.hk page 2 of 8 DG QFII HK EN 06/18
General Information Anti-Money Laundering (AML) / Know Your Customer (KYC) Documentation Before you can operate as an appointed agent of Franklin Templeton Investments ( FTI ), you must submit your certified true copies of AML / KYC documentation and a completed and signed copy of the Fund application form. Details of AML / KYC documentation requirements are provided in the Fund application form. All documentation must be received in good order before any orders can be accepted. As a regulated financial intermediary, you must comply with the requirement of all applicable AML laws, which may include screening your customers against appropriate sanction list(s), collecting the necessary AML / KYC documentation and retaining those information and documentation in accordance to the said laws. Being an appointed agent of FTI, you must also provide all reasonable cooperation to FTI to allow it to comply with its own AML obligations, which may include producing these documents upon request by the relevant authorities or regulatory bodies. Please note that it is our Company policy not to make or accept unrelated third party payments. Charges Details of all charges applicable to each Fund are contained in the Fund Explanatory Memorandum. Minimum Investment The minimum initial investment of the Fund is USD1,000 (or HKD equivalent) and for subsequent purchases USD500 (or HKD equivalent). Minimum Holding In the case of a partial redemption of a holding, the minimum value of a holding remaining in any one fund after such a partial redemption must not less than USD1,000 (or equivalent). Other Charges Charges, for instance bank charges, telegraphic charges and courier charges, shall be borne by the investors. Third Party Payments Please note that it is the Company s policy not to make or accept unrelated Third Party Payments. Account Number Upon acceptance of an application, investors will be given an Account Number. This Account Number should be used in all correspondence with the Company or the Transfer Agent. Publication of Net Asset Value (NAV) The net asset value per unit is normally published regularly in the South China Morning Post and the Hong Kong Economic Times and is also available on the website www.franklintempleton.com.hk. Dealing Information Business Day Any full day (except Saturdays, Sundays and public holidays in Hong Kong or China) on which banks are open for business in both Hong Kong and China or such other day or days as the Trustee and the Manager may agree from time to time, provided that where, as a result of a no. 8 typhoon signal, Black Rain storm warning or other similar event, the period during which banks in Hong Kong are open for normal banking business on any day is reduced, such day shall not be a business day unless the Trustee and the Manager determine otherwise. Valuation Day Any Business Day on which the stock exchanges in both Hong Kong and the PRC are open, or such other day as the Trustee and the Manager may agree upon from time to time; provided that such day shall not be a Valuation Day if it falls within any of the periods during which there is a suspension of dealing, unless the Trustee and the Manager determine otherwise. Dealing Day Any Business Day on which is also a Valuation Day, or such other day as the Trustee and the Manager may agree upon from time to time. Dealing Hours Dealing hours are 09:00 to 16:00 Hong Kong and Singapore time on any business day. To take effect on a business day, subscription and redemption instructions must be received by Citicorp Financial Services Limited via fax by 16:00 on that day. Instructions/requests received after 16:00 on a business day or on a non-business day will normally be held over until the next business day and will receive the next business day s price unless otherwise agreed with Franklin Templeton Investments (Asia) Limited. After the deal is received and processed, the trade confirmation will be available the next business day. www.franklintempleton.com.hk page 3 of 8 DG QFII HK EN 06/18
Placing Deals Deal Instructions duly signed by authorised personnel must be sent via fax by 16:00 Hong Kong and Singapore time at Fund Dealing Fax Number: +852 3141 4182. Currency All investments should be placed in the Fund currency. Numerical Accuracy There will be two (2) decimal places for NAV price and transaction amount. Three (3) decimal places will be used for number of units (holdings). Typhoon & Black Rain Arrangement Should there be typhoon signal 8 or Black Rain on a valuation date, the arrangement stated below will apply: 1. If Typhoon signal no. 8 or above and / or Black Rain signal is hoisted before the day starts but returns to normal on or before 12:00 noon Hong Kong Time (HKT), then it will be a dealing day; 2. If Typhoon signal no. 8 or above and / or Black Rain signal is hoisted on a Business Day in Hong Kong before the day starts and continues to be hoisted after 12:00 noon HKT, that day will not be a dealing day and all the orders received on that day will be processed in the next dealing day; 3. If Typhoon signal no. 8 or above and / or Black Rain signal is hoisted after 12:00 noon but before 16:00 HKT on a Business Day in Hong Kong, cut off time will be set at the time when the signal is hoisted and that day will be a dealing day and all the orders received on that day will be processed the same day. Since Hong Kong Observatory will pre-announce the time they put the signal up, so Citicorp Financial Services Limited would be able to advise the distributors of the cut off time which will give the latter one to two hours to process and forward their orders to Citicorp Financial Services Limited; 4. For Black Rain arrangement, if the Black Rain signal is hoisted after the day starts (9am HKT) and banks are open as per normal, it will keep as a normal dealing day. In accordance with the definitions stated under the Explanatory Memorandum, if a day (other than Saturday) is defined as a non-business Day, then it should also be a Non-Dealing Day. No NAVs will be computed for non-dealing days. How to Purchase Units Instructions to buy Subscription instructions may be sent via mail or fax (Please refer to "Dealing Information" section for further details). A FTI transaction form may be used to place subscription deals with us. Subscription instructions should contain the following information: Account name(s) Account Number(s) Name of the Fund(s) Amount to be subscribed Chargeable Sales Charge (%) if applicable Authorised signature(s) as per the dealing authority previously provided Contact telephone number, or fax number Address Subscription orders can be placed in units or amount in Fund Currency only. How to pay Payments in cash, traveller cheques or non-bank money orders are not accepted. Payments should normally be made by electronic bank transfer to our bank account, as detailed in "Appendix A: Payment Instructions". Payments should be made by three (3) business days from the trade date (T+3) into the fund collection account maintained with Citicorp Financial Services Limited. Should monies not be received by us within this timeframe, FTI reserves the right to cancel the deal and claim any losses or expenses incurred from you. The remitter shall absorb the remittance charges, if any. www.franklintempleton.com.hk page 4 of 8 DG QFII HK EN 06/18
How to Redeem Units Instructions to redeem Redemption instructions may be sent via fax. Please refer to "Dealing Information" section for further details. A FTI transaction form may be used to place redemption deals with us. Redemption instructions should contain the following information: Account name(s) Account number(s) Name of the Fund(s) Number of units or amount to be sold Payment details Authorised signature(s) (except for electronic orders) as per the dealing authority previously provided Contact telephone number, or fax number Note: Redemption Instructions can only be processed once the related subscriptions are settled. Redemption orders can be placed in units or amount in Fund Currency only. Payment of Redemption Proceeds Payment Instructions Payments for redeemed units are valued within one (1) month to investor s account by electronic bank transfer to investor s bank account. In the event that the Fund is subject to certain legal and/or regulatory requirements (such as constraints on the repatriation of capital or foreign currency controls), the time frame for the payment of redemption proceeds will be further extended taking into account the additional time needed to address such legal and/or regulatory requirements. The extended time frame for the payment of redemption proceeds will be within seven (7) Business Days after the completion of the corresponding repatriation process. In the event that the aforesaid time frame of seven (7) Business Days includes a day or days in which banks in the US are closed for business ( US Currency Holiday(s) ), such time frame will be further extended to the extent of the occurrence of such US Currency Holiday(s). Payments will be made in the Fund Currency. A single payment will be made for all redemption orders processed on the same date, with the same value date, for the same account. Any bank charges levied on the incoming payment by the receiving bank shall be borne by you. Bank details included on the deal instruction should include the following (if standing instruction is not provided): Beneficiary s bank name and address SWIFT address Beneficiary s account name Bank account number Correspondent bank details (if applicable) Dividends No distribution of dividends shall be made, but the net income attributable will be reflected in the increased value of the Units. Confirmation/Details of Deals & Periodic Statements Daily Confirmations A Daily confirmation report will be available via fax or email on the next business day after a deal is processed. Monthly Statements Statements of Account showing the balance of Unit Holders investments and all transactions made during the month, distribution details and investment value will be available via email five (5) business days after the end of the month. How to Amend Registration Details Change of Registration Details The intermediary should notify us of any changes to the address, contact details or dividend options in writing, signed by the authorised personnel. www.franklintempleton.com.hk page 5 of 8 DG QFII HK EN 06/18
Commissions Trail and retrocession commissions are calculated based on the below formula: Unit Price * Number of shares * Agreed annual rate of commission / 365 or 366 All units issued as at the respective date will be used for calculation, irrespective of the settlement status. Holidays Fund holidays calendar will be available on a yearly basis. www.franklintempleton.com.hk page 6 of 8 DG QFII HK EN 06/18
Appendix A: Payment Instructions Please pay into: Retail Fund - For USD Bank: SWIFT: Account Name: Account Number: For further credit to: Account number: Additional Info: Quoting Ref: Retail Fund - For HKD Bank: SWIFT: Account Name: Account Number: For further credit to : Account number : Additional Info : Quoting Ref: Citibank, N.A., New York CITIUS33 Citibank, N.A., Hong Kong 10990845 Account Name: Cititrust Ltd as Trustee for Templeton China Opportunities Fund Subscription 62015052 For RTGS payment in HK: CHATS code 006 and Branch code 391 [Name of subscriber] Citibank, N.A., Hong Kong CITIHKHX Citibank, N.A., Hong Kong - Account Name: Cititrust Ltd as Trustee for Templeton China Opportunities Fund Subscription 62020323 For RTGS payment in HK: CHATS code 006 and Branch code 391 [Name of subscriber] www.franklintempleton.com.hk page 7 of 8 DG QFII HK EN 06/18
Appendix B: General KYC documentation requirement for Financial Institution Documents should be in Original / **Certified True copies: 1. Recent Business Registration Certificate or Business registration document issued by relevant authority 2. Certificate of Incorporation and subsequent Certificate of Change of Name (if applicable) For foreign incorporated company: A similar company search enquiry of the registry in the place of incorporation and obtain a company report; A certificate of incumbency or equivalent issued by the company s registered agent in the place of incorporation; or A similar or comparable document to a company search report or a certificate of incumbency certified by a professional third party in the relevant jurisdiction 3. Memorandum and Articles of Association which evidence the powers that regulate and bind the company 4. The latest authorized signatories list (including specimen signature) issued by the client s company letterhead or official published booklet; AND Proof of ID for at least 2 authorized signatories (including Name, ID No. and ID Type); OR; A confirmation in relation to the authorized signatories identity(ies) either from (a) client s HR / Compliance / Audit Department; or (b) person within that client which is independent to the authorized signatories list 5. Board of Directors list; AND Proof of ID for at least 2 Director(s), including Name, ID No. and ID Type; OR Company search on directors ID 6. Minutes / Board Resolution (or equivalent document(s)) for the opening of an account with Franklin Templeton and confer authority on those who will operate the account 7. Evidence of registration with the supervisory authorities, i.e. a copy of certificate issued by the corresponding supervisory authority or a copy of the registration detail as extracted from the corresponding authority s official website 8. Standing payment instruction signed by authorized signor(s) on bank details for payment of redemption and dividend (if any) 9. Relevant IRS form which could be downloaded from IRS website: https://apps.irs.gov/app/picklist/list/formspublications.html 10. CRS Self-Certification Form 11. Application Form **All certified documents must: Be signed and dated by the certifier who is independent to the authorized signatories list Show the full name of the certifier Indicate the certifier s position or capacity and the name of their company Where possible a company / official stamp should be included with the certification State that it is a true copy of the original The certified date should be issued within the last 6 months Additional documents may be required subject to the business nature of the entity. Accounts outside Hong Kong distribution including Macau and China will be subject to the local requirement for the account opening. www.franklintempleton.com.hk page 8 of 8 DG QFII HK EN 06/18
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