The Financial Supervisory Commission (hereinafter, the “FSC”) issued the Jin-Guan-Zheng-Tou-1070334693 Directive of September 18, 2018 to permit a securities investment trust enterprise to invest its own funds in a domestic securities investment consulting enterprise.
Under Article 12, Paragraph 1, Subparagraph 5 of the Regulations Governing Securities Investment Trust Enterprises, the funds of a securities investment trust enterprise shall not be lent to others, used to purchase real estate for non-operation usage or used for other purposes. Funds not needed for business operation can be utilized in the form of domestic bank deposit, domestic government bonds or financial debentures, domestic treasury bills, negotiable bank certificates of deposit or commercial papers, a fixed percentage of beneficiary certificates of securities investment trust funds which meet the requirements of the FSC, or for “other purposes approved by the FSC.”
With respect to the “other purposes approved by the FSC,” the FSC has allowed an investment trusting enterprise to use its own funds to invest in the domestic futures exchange, financial and technology industries, companies which engage in online distribution of funds and which are invested and set up by Taiwan Depository & Clearing Corporation and the Taipei Exchange, domestic insurance agent or broker companies, venture capital enterprises and venture capital investment management consulting companies, golf course memberships, or as foreign currency holdings via foreign currency accounts set up at designated foreign exchange banks in Taiwan. In this Directive, the FSC additionally permits an securities investment trust enterprise to use its own funds to invest in securities investment consulting enterprises.