TAIPEI, May 21 (Reuters) - Taiwan's central bank plans to require foreign investors receiving U.S. dollar-denominated dividends from companies including TSMC to stick with one currency choice and not switch frequently, with authorities currently leaning toward allowing changes only once a year, three sources familiar with the matter said.
• In April, Taiwan’s Financial Supervisory Commission said listed local companies could begin distributing foreign-currency-denominated dividends to foreign shareholders.
• The sources said foreign custodian banks were willing to cooperate with the new rules for U.S. dollar dividend payouts for Taiwan stocks.
• One of the sources, who declined to be named as they were not authorized to speak publicly, added that allowing investors to change their selection once a year would be acceptable, but changes should not be made too frequently.
• TSMC began paying quarterly cash dividends in 2019, distributing dividends four times a year.
• TSMC said in an emailed statement that it welcomed the implementation of the relevant policies and would further evaluate possible arrangements after authorities announce the details.
• Reuters could not immediately obtain an official response from Taiwan's central bank.
• Due to the time required for foreign custodian banks to build the necessary systems, actual implementation of foreign currency dividend payouts is expected to begin next year.
(Reporting by Emily Chan; Editing by Thomas Derpinghaus)
