2017.10.16
Grace Chiang
The Financial Supervisory Commission (hereinafter, the “FSC”) issued the Jin-Guan-Zheng-Tou-1060029911 Circular of October 16, 2017 (hereinafter, the “Circular”) to relax the conditions and ratios of investment consulting enterprises’ investment in securities investment trust funds, futures trust funds or offshore funds.
This Circular eased the original cap on the total amount of funds, pursuant to Article 6, Paragraph 1, Subparagraphs 4 and 5 of the Regulations Governing Investment Consulting Enterprises, which an investment consulting enterprise may invest in securities investment trust funds placed in Taiwan by securities investment trust enterprises, or futures trust funds placed by nonspecific persons and offshore funds from the original 30% of the net worth in the most recent CPA-certified financial statement of the securities investment trust enterprise to 40%; the total amount invested in each securities investment trust fund, futures trust fund or offshore fund shall not exceed 10% of the net asset value of each invested fund.
In addition, the total amount of the above investment in securities investment trust funds, futures trust funds and offshore funds shall be determined based on the original investment cost. If the above fund investment cap cannot be complied after investment is made due to changes to the company’s net worth or the net asset value of the invested fund, the securities investment consulting enterprise is not required to dispose of the investment immediately. However, it cannot buy and can only sell the invested funds thereafter until the adjusted investment amount meets the investment cap.