2017.5.17
Oli Wong
The Financial Supervisory Commission (hereinafter, the “FSC”) released investment in exchange-traded funds (ETF) and index funds from the maximum investment amount restriction under Article 10, Paragraph 1 of the Regulations Governing Securities Investment Trust Funds (hereinafter “the Regulations”) via the Jin-Guan-Tou-100600158982 Directive of May 17, 2017 ( hereinafter “the Directive”) and the Directive became effective immediately.
Under Article 10 of the Regulations, the aggregate investment of a fund in short-term bills and securities issued, guaranteed or endorsed by any company shall not exceed ten percent of the net asset value of the fund. However, the Directive eased the investment restriction and pointed out that in case of securities investment made to stay consistent with the index components of the investment target and track, simulate or replicate the index performance of the investment target, if the securities investment trust enterprise subsequently uses the ETFs and index funds to invest in short-term bills and securities issued, guaranteed or endorsed by any company, the total amount of such investment may be free from the fund’s 10% net asset value restriction.