The Taiwan Financial Services Commission amended the Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities and parts of the Directions for the Conduct of Wealth Management Business by Securities Firms to expand securities dealers’ high-asset customer wealth management business, in support of Taiwan’s policy to develop an Asia Asset Management Center. The changes relax entry conditions for securities dealers applying to conduct the high-asset customer business by deleting substantive commitment requirements linked to net value restrictions and conditions for investment attraction and talent recruitment, while adding requirements including no cumulative losses and compliance with relevant supervisory ratio restrictions such as the debt-to-equity ratio. Product distribution rules were also loosened for offshore structured products issued by overseas subsidiaries of securities dealers by expanding eligible counterparties beyond high-asset customers and certain institutional categories to include juristic persons or funds of professional investors and natural persons of professional investors. Securities dealers are additionally permitted to conduct wealth management business through a trust arrangement and to offer foreign currency-denominated structured financial bonds issued by banks in Taiwan to professional investors. Although the net value restriction was removed from application financial conditions, financial soundness including a firm’s net value will be considered in subsequent applications to apply graded management tied to a dealer’s business development status. The FSC indicated the draft notice process has been completed and the amendments will be issued and implemented in a short period of time.

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