Taiwan’s Financial Supervisory Commission (FSC) has published a new bunch of laws to further regularise fund distribution for offshore asset managers.
AS per the new law, offshore asset managers are required to have no less than NT$5bn ($161m) in AUM in Taiwan or should outsource at least NT$3.5bn worth of their AUM to local counterparts if they carry out fundraising or fund distribution on the island state, Asia Asset Management reported citing a report published by the Commercial Times.
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The new directive, which aims to encourage offshore players to be more committed to the local market, will come into force in April 2017.
The existing offshore fund plan that has proved to be damp with only two offshore managers having qualified for the programme, required the managers to meet a defined set of criteria including increasing their investments and improving their quality of service to benefit from faster approvals for retail launches and waivers of derivative product restrictions.
The publication quoted Securities and Futures Bureau deputy director Wang Yung-hsin saying that the initiative has had little impact on the market to date, which coupled with a lack of transparency and investor protection under the existing system, has prompted the bureau to introduce additional new measures focussed on offshore fund distribution.
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