2018.1.11
Grace Chiang
The Financial Supervisory Commission (hereinafter, the “FSC”) issued the Jin-Guan-Zheng-Chuan-1070300104 Directive of January 11, 2018 (hereinafter, the “Directive”) to communicate that overseas Chinese and foreign nationals seeking to invest in securities may entrust, by way of mandate, an enterprise relating to securities investment which is approved by the FSC to conduct discretionary investment business to make the investment.
According to the Directive, Article 2 of the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals provides that overseas Chinese and foreign nationals may entrust, by way of mandate, securities investment trust enterprises, securities investment consulting enterprises, trust enterprises, futures commissioned merchants and securities brokerage firms which are approved by the FSC to conduct discretionary investment business to invest in securities. However, relevant provisions under the Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals, the Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises, and Regulations Governing Commissioned Futures Merchants shall still be followed. In addition, enterprises seeking to operate foreign currency discretionary investment in securities denominated in foreign currencies for overseas Chinese and foreign nationals shall obtain the approval of the Central Bank first.