Taiwan’s FSC launches new measures to attract overseas investors
11 July 2013
News, China, Global, Taiwan
By Hui Ching-hoo
Taiwan’s Financial Supervisory Commission (FSC) unveiled a slew of concessionary measures on Tuesday (July 9) to tempt more foreign investors into the Taiwanese debt, equity, and fund markets, according to a report from United Daily News.
Chang Li-chen, bureau director-general at the FSC, notes that the authority will amend the ‘Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals’ in order to streamline the process by which offshore investors can subscribe to local debt and fund products, to ensure that related transactions no longer need to be carried out via designated custodian banks.
In addition, overseas investors are now allowed to indirectly own a proportion of local securities beyond the previously broadly applied investment ceiling if they are investing in fund products.
The FSC will also allow securities brokerages to access the somewhat niche custody segment there. Currently, only local banks can undertake custodian tasks for foreign investors.
Ms. Chang notes, however, that the revised regulations are not applicable to investors from mainland China.
Securities Investment Trust & Consulting Association (SITCA) chairman Henry Lin said that the removal of these restrictions on investments in local funds will encourage Taiwanese fund managers to pursue overseas fundraising.
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