Taiwan is making headway in easing asset management regulations and opening up the private banking market to facilitate plans to turn the island into an asset management hub, says Yan-Liang Chen, vice chairperson of the Financial Supervisory Commission (FSC).
Financial deregulation is a key part of the plan, with the government targeting to more than double assets under management in Taiwan to NT$60 trillion (US$1.82 trillion) within six years.
The FSC aims to loosen more than 30 regulations related to the operations of wealth and asset managers by the end of this year, Chen says in an interview with Asia Asset Management.
“Removing regulatory hurdles is conducive in diverting more capital into the onshore financial market, attracting investment talent, as well as bolstering domestic fund houses’ investment capabilities and business scale.”
The FSC is also loosening entry barriers for private banking. There are now 12 banks offering private banking services in Taiwan and the regulator plans to grant several more licences in the coming years.
Chen says the newcomers will attract more high-net worth clients and new products to Taiwan, which will help facilitate growth of family offices and onshore banking units.
Many wealthy Taiwanese prefer investing in jurisdictions such as Hong Kong and Singapore, and Chen believes they may consider bringing some of the money back as the local wealth management market matures.