FSC to relax rules governing OSU business by end-October
Taipei, Oct. 10 (CNA) Taiwan’s top financial regulator said Friday it will relax rules governing the business scope of Taiwanese securities firms’ offshore securities units (OSU), a move that could help the units seize more opportunities.
The Financial Supervisory Commission (FSC) said that it will seek approval from the Central Bank of the Republic of China for the business liberalization and hopes that new rules will take effect by the end of the month.
Among the changes is the removal of restrictions against OSUs raising mutual funds which target the local bourse at a total amount representing more than 30 percent of their net worth.
OSUs will also be allowed to sell foreign currency-denominated structured securities which link to local shares, stock market indexes and exchange traded funds, the FSC said.
The local central bank has already issued a greenlight for OSUs to conduct foreign exchange transactions and is providing them with training to help them secure licenses before the new business kicks off.
The SFC said that OSUs are expected to conduct trading of derivatives related to the exchange of the Taiwan dollar against foreign currencies after they secure their licenses.
The commission will attend a meeting scheduled by the financial committee of the Legislative Yuan next Monday to brief lawmakers about the OSU mechanism and businesses.
The FSC said that taking advantage of the relaxed rules means offshore banking units of Taiwanese banks and offshore insurance units of Taiwanese insurers could make Taiwan into a wealth management center for Asia.
It said the market openness in Taiwan is expected to attract more investors from China and abroad to entrust Taiwanese institutions to manage their wealth
