The Taiwan Financial Services Commission (FSC) issued pre-advice on draft amendments to three securities firm rulebooks to permit securities dealers to conduct “self-trading of specific foreign bonds” and to provide investors with specific foreign bonds in denominations below one trading unit, including for non-professional investors. The package is intended to translate a completed financial innovation experiment involving a “Bond Group-Purchase Platform” into a standing regulatory framework. Following an end-2023 expert evaluation that found the experiment innovative and supportive of inclusive finance, the FSC reviewed relevant rules under the Financial Technology Development and Innovative Experimentation Act and proposed a regime that allows existing securities dealers to add this business line by application and creates a special category of securities dealer licensed to operate only this restricted business. Draft changes would set a minimum capital requirement of NT$100 million for dealers solely engaged in this activity, require internal controls to follow Taipei Exchange (TPEx) rules, exclude the application of certain provisions in the Regulations Governing Securities Firms and the Personnel Management Regulations, and delegate TPEx to manage and issue related operational and personnel standards; personnel requirements would be narrowed so only responsible persons and associated persons for this business must hold associated person qualifications and complete registration. The FSC also indicated it would lower the cap on total foreign bond positions for securities firms conducting this business. The draft amendments will be published in the Executive Yuan Gazette, with a summary and comparison table made available on the FSC website. Comments are invited through the “Pre-advice on Draft Provisions” page of the FSC Regulatory Inquiry System.
Taiwan Financial Services Commission 2025-02-21
Taiwan Financial Services Commission seeks feedback on amendments to let securities dealers self-trade specific foreign bonds and offer sub-unit denominations
The Taiwan Financial Services Commission (FSC) issued pre-advice on draft amendments allowing securities dealers to self-trade specific foreign bonds and offer them in smaller denominations, including to non-professional investors. Following a successful financial innovation experiment, the amendments propose a new regulatory framework with a minimum capital requirement of NT$100 million for dealers solely engaged in this activity. The FSC plans to lower the cap on total foreign bond positions for firms conducting this business and delegate operational standards to the Taipei Exchange.