Taiwan regulator to relax 26 financial rules by late June
By Kathryn Chiu, The China Post
March 27, 2014, 12:01 am TWN
TAIPEI, Taiwan -- As part of the plan to allow offshore securities units (OSUs) to operate in free economic pilot zones, the top financial regulator in Taiwan is set to loosen 26 financial rules by the end of June.
According to the United Daily News, the relaxed provision will include permission for Taiwan-based banks to issue dual currency credit cards, the allowing of offshore structured financial products sold in Taiwan to link with those available in mainland China and the allowing of bond funds and balanced mutual funds operating in Taiwan to invest in high-profit bonds.
So far 12 securities firms operating in Taiwan, both domestic and foreign, have obtained OSU licenses from the FSC.
The FSC earlier met with ranking officials of financial institutions to discuss their endeavor to break into the Asian market. Nearly every securities firm expressed the hope that the government would increase the capital limits that firms are allowed to invest overseas.
The current rule stipulates that a security firm may only invest an amount equivalent to 40 percent of its net value overseas.
According to securities firms, they can be profitable only if share market daily turnover passes NT$80 billion.