Newsletter
Amendments to the Directions Governing Custodian Institution of Separate Accounts and Investment Objects of Investment-linked Insurance
To accommodate additional investment objects under investment-linked insurance policies to include general bank debentures or general corporate bonds denominated in foreign currencies which are listed in the Republic of China (ROC) issued by foreign financial institutions, the Financial Supervisory Commission (FSC) issued the amended Directions Governing Custodian Institution of Separate Accounts and Investment Objects of Investment-linked Insurance ("Directions"), per the letter Ref. No. Jin-Guan-Bao-Shou-Zi No. 10402546071 dated 21 August 2015. The main points are as follows:
1. Article 3
The issuer or the guarantor of the foreign debt securities is closely related to the rights and interests of the investors, and therefore the Directions stipulate that the issuer or the guarantor of such debt securities shall set up a branch or subsidiary in accordance with Article 6 of the Regulations Governing Offshore Structured Products in the ROC to communicate and conduct the relevant business.
2. Article 7
New addition to the currency of denomination of the foreign debt securities set forth in Article 3 of the Directions. In addition, amendment to Subparagraph 2 to stipulate that the foreign debt securities set forth in Article 3 of the Directions under investment-linked insurance policies shall be traded on the domestic over-the-counter market and shall not be sold exclusively to professional investors.