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Securities Investment Trust Enterprises (SITEs) now allowed to inject their own capital as seed money or seed capital for their own funds prior to inception

2017-08-11
With the aim of increasing the competitiveness of SITEs to facilitate alignment with international norms, on June 30, 2017, the FSC announced an adjustment to an order, allowing SITEs to adopt the seed money or seed capital mechanism for the purpose of fund marketing, and investment strategy experimentation and other purposes. When a SITE gains approval from the FSC, it can invest the capital in its own publically-offered investment trust funds or offshore funds that it is commissioned to manage before they are incepted, it will be exempt from the regulation that places an investment ceiling of 5% of the SITE’s total net value in a single fund and also the regulation that the amount of investment must not exceed 5% of the invested fund’s net asset value on the previous day; however, the amount invested in all funds by a SITE must not exceed 40% of its net value.
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  • Update: 2017-08-11
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