Newsletter
INTERPRETATION ON OUTSIDE MANAGEMENT OF INVESTMENT INSURANCE FUNDS
A recent letter issued by the MOF dated 9 Oc-tober 2002 stated that if an insurance company intends to place funds from its separate account for investment-type insurance business with an outside specialist investment institution for off-shore investment, it must go through its internal procedures for the contracting out of capital management, and any entity that it commissions to conduct such capital management must con-form with the provisions of Article 5 Paragraph 1 Item 2 of the Regulations Governing Variable Life Insurance Products. An insurer may not directly entrust such funds into an overseas asset management enterprise which has not been ap-proved by the MOF.