September 2018
Circumstances in which transactions other than lending between insurance enterprises and interested parties may be exempt from restrictions under relevant rules (Taiwan)
2018.7.17
Grace Chiang
The Financial Supervisory Commission (hereinafter, the "FSC") issued the Jin-Guan-Bao-Cai-10704502771 Circular of July 17, 2018 (hereinafter, the "Circular") to interpret the circumstances in which transactions other than lending between insurance enterprises and interested parties may be exempt from restrictions under Article 4, Paragraph 1 and Article 5 of the Regulations Governing Transactions Other Than Lending between Insurance Enterprises and Interested Parties (hereinafter, the "Regulations at Issue") and to abolish the FSC's Jin-Guan-Bao-One-09600231302 Directive of March 7, 2008.
According to this Circular, transactions other than lending between insurance enterprises and interested parties may be exempt from restrictions under Article 4, Paragraph 1 and Article 5 of the Regulations at Issue concerning "terms of transactions not more favorable than those for other counterparties of the same type," "requirements of a resolution with over two thirds of the company's directors present and with the approval of over three fourths of the directors present," and "trading amount limits," in any of the following circumstances:
1. The government is the representative or a major shareholder of the insurance enterprise.
2. Enterprises enumerated under Article 2, Paragraph 1, Subparagraph 2 of the Regulations at Issue since the government is the representative or a major shareholder of the insurance enterprise. However, if such enterprise is concurrently the representative or a major shareholder of such insurance enterprise, or if such enterprise is subject to the circumstance under Article 2, Paragraph 1, Subparagraph 2 of the Regulations at Issue due to other non-government private shareholders or natural persons, the restrictions under the Regulations at Issue shall still apply.
Grace Chiang
The Financial Supervisory Commission (hereinafter, the "FSC") issued the Jin-Guan-Bao-Cai-10704502771 Circular of July 17, 2018 (hereinafter, the "Circular") to interpret the circumstances in which transactions other than lending between insurance enterprises and interested parties may be exempt from restrictions under Article 4, Paragraph 1 and Article 5 of the Regulations Governing Transactions Other Than Lending between Insurance Enterprises and Interested Parties (hereinafter, the "Regulations at Issue") and to abolish the FSC's Jin-Guan-Bao-One-09600231302 Directive of March 7, 2008.
According to this Circular, transactions other than lending between insurance enterprises and interested parties may be exempt from restrictions under Article 4, Paragraph 1 and Article 5 of the Regulations at Issue concerning "terms of transactions not more favorable than those for other counterparties of the same type," "requirements of a resolution with over two thirds of the company's directors present and with the approval of over three fourths of the directors present," and "trading amount limits," in any of the following circumstances:
1. The government is the representative or a major shareholder of the insurance enterprise.
2. Enterprises enumerated under Article 2, Paragraph 1, Subparagraph 2 of the Regulations at Issue since the government is the representative or a major shareholder of the insurance enterprise. However, if such enterprise is concurrently the representative or a major shareholder of such insurance enterprise, or if such enterprise is subject to the circumstance under Article 2, Paragraph 1, Subparagraph 2 of the Regulations at Issue due to other non-government private shareholders or natural persons, the restrictions under the Regulations at Issue shall still apply.
