An insurer may elect to handle investment in domestic private equity funds with a resolution adopted by its board of directors or within the scope of its authorization, provided that documents shall still be prepared for the ex post audit of the competent authority (Taiwan)

2018.1.2
Sean Tsou

The Financial Supervisory Commission issued the Jin-Guan-Bao-Cai-10602505941 Directive of January 2, 2018 (hereinafter, the “Directive”) to communicate that when an insurer invests in a domestic fund set up by national investment grade company, if such fund is a domestic private equity fund and is a viable target of investment which meets other requirements of the competent authority under Article 5, Paragraph 2, Subparagraph 3 of the Regulations Governing Use of Insurer’s Funds in Special Projects, Public Utilities and Social Welfare Enterprises or meets the other circumstances required by the competent authority under Article 10, Paragraph 1, Subparagraph 4 of the same regulations, the insurer may elect to handle the investment with a resolution adopted by its board of directors or within the scope of its authorization, provided that the documents under Article 9, Paragraph 1 of such regulations shall still be prepared for the ex post audit of the competent authority.  Therefore, the competent authority may regularly inspect an insurer’s investment status and limit or review the insurer’s investment in domestic private equity funds based on the economic condition and the actual investment performance.