Taiwan’s FSC and LPFSC establish special committee for LPF member choice platform
24 September 2013
Category: News, Taiwan
By Hui Ching-hoo
Taiwan’s Financial Supervisory Commission (FSC) and Labor Pension Fund Supervisory Committee (LPFSC) have jointly set up a special committee as part of preparations for the formation of a member choice platform for the Labor Pension Fund (LPF), according to a report from Commercial Times.
Jennifer Wang, vice chairperson of the FSC, told local media that the special committee will finalise the details of the member choice scheme later this year. The bill will then be submitted to the Legislative Yuan for approval. However, she said it will still take months for the platform to be officially implemented – when all product approval processes are complete.
Ms. Wang noted that some of the pension funds will be diverted from internal investment entities to qualified Taiwanese insurance and financial institutions under the member choice platform. Such a move would help invigorate the local financial markets. The mandates for the member choice scheme will mainly be linked to investment funds and pension products.
Taiwan’s Life Insurance Association is calling to include commercial insurance products in the member choice platform, noting that pension products, especially annuities, are able to provide retirement protection for the elderly.
Donna Chen, managing director of Keystone Intelligence, previously noted that the LPF will have to overcome several obstacles before it can launch the scheme. For example, some labour unions are opposed to it based on concerns that member choice products will not be able to provide guaranteed returns.