Taiwan Financial Services Commission (FSC) issued draft amendments to its requirements for non-restricted-purpose loans offered by securities dealers, aiming to expand eligible collateral to include foreign bonds and to clarify related eligibility conditions. Under the draft, “foreign bonds” would be added as acceptable collateral, while borrowings in New Taiwan dollars would not be allowed to be converted into foreign currencies. The scope of eligible foreign bonds would follow the foreign-bond provisions in Article 6 of the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities, and the bonds would need to be rated investment grade by an FSC-recognized credit rating company. The draft will be published in the Executive Yuan Gazette, with the draft’s general description and comparison table posted on the FSC website, and the FSC invited public feedback via its Laws and Regulations Retrieving System.
Taiwan Financial Services Commission 2026-04-14
Taiwan Financial Services Commission consults on allowing investment grade foreign bonds as collateral for securities dealers’ non-restricted-purpose loans
The Taiwan Financial Services Commission issued draft amendments on non-restricted-purpose loans by securities dealers to expand eligible collateral to include foreign bonds and clarify related eligibility conditions. Foreign bonds must align with Article 6 of the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities, be rated investment grade by an FSC-recognized credit rating company, and New Taiwan dollar borrowings may not be converted into foreign currencies.