Taiwan has opened a trial zone for financial institutions in Kaohsiung, a city around 352 kilometres to the south of Taipei.
The move is part of the government’s policy to promote the city as an offshore financial hub to complement President Lai Ching-te’s plan to double Taiwan’s asset management industry to around NT$60 trillion (US$1.8 trillion) by 2030.
Financial institutions will be allowed to apply to operate 38 businesses in the trial zone, the Financial Supervisory Commission (FSC) says in a statement on April 1. It estimates that 96 financial institutions are qualified to enter the zone.
Chuang Hsou-Yuan, the FSC’s vice chairwoman, says the banking industry has the most business options, and that the regulator is aiming for assets under management from major banking clients in the zone to reach NT$2 trillion by the end of the year.
Banks will, among other things, be able to offer consultancy services to family offices and wealthy clients.
Meanwhile, asset managers will be allowed to set up external asset management units dedicated to family offices, while insurers will be able to sell high cash value policies and foreign currency health insurance to wealthy clients.
Chuang believes the trial zone will encourage foreign asset managers to set up units in Kaohsiung, and prompt Taiwanese to bring back their overseas investments.
