Taiwan’s FSC asks offshore funds to set up local back offices

16 September 2013   Category: News, Asia, Taiwan   By Asia Asset Management

Taiwan’s Financial Supervisory Commission (FSC) is poised to launch new initiatives to regularise the operation of offshore funds, according to a report from Economic Daily News.
Ming-Chung Tseng, chairman of the FSC, told local media that Taiwan will follow suit with Korea and Malaysia in moving to control offshore fund operations. The initiative stipulates that offshore fund managers must set up their back offices and research and administrative divisions locally when their fundraising reaches a certain level of scale – the exact size is yet to be announced. 
Mr. Tseng notes that although offshore funds have been growing rapidly in Taiwan, most of their back offices are established out of the territory, which creates few job opportunities for local practitioners. 
According to figures from the Securities Investment Trust and Consulting Association (SITCA), the number of offshore funds in Taiwan currently stands at around 1,000, with total AUM of NT$2.6 trillion (US$86.6 billion). 
Mr. Tseng notes that the FSC will continue to streamline legal procedures and strengthen risk and discipline supervision so as to facilitate the growth of the finance industry.