If a venture capital subsidiary or venture capital management consulting subsidiary of a securities investment trust enterprise intends to serve as a general partner of a private equity fund or venture capital enterprise, an approval shall be obtained from the Financial Supervisory Commission in advance (Taiwan)

2018.5.21
Elva Chuang

The Financial Supervisory Commission rendered the Jin-Guan-Zheng-Tou-10703142173 of May 21, 2018 (hereinafter, the "Circular") to point out that the Financial Supervisory Commission had previously allowed securities investment enterprises to apply for an approval for investment in venture capital enterprises and venture capital management consulting companies (amendments made via the Jin-Guan-Zheng -Tou-10500413842 Circular of January 3, 2017).  Therefore, Article 3 of the Rules for Facilitating Venture Investment Enterprises provides that a venture capital enterprise may operate in the form of limited partnership.  Considering that a private equity fund, in a broad sense, also includes venture capital, if the venture capital subsidiary or venture capital management consulting subsidiary of a securities investment trust enterprise seeks to serve as a general partner of a private equity fund or venture capital enterprise, the requirements of the above Circular shall also apply, and an approval should be obtained from the Financial Supervisory Commission in advance.