Since the Financial Supervisory Commission (FSC) permitted banks to conduct wealth management businesses for high-asset customers in 2020, the total assets under management (AUM) of high-asset customers has exceeded NT$1 trillion.
      The FSC launched the "New Wealth Management Plan" at the end of 2019 and promulgated the "Regulations Governing Banks Conducting Financial Products and Services for High-Asset Customers" on August 7, 2020. The legislation targeted high-asset customers with an asset of more than NT$100 million and relaxed regulations for banks to provide a diverse range of financial products and consulting services to high-asset customers that meet certain criteria. The FSC also aims to enhance the product design and development capabilities of domestic banks and accelerate professional talent cultivation. The FSC amended the Regulations on December 12, 2023, which expands the scope of entities eligible for the investment and talent recruitment clause to encourage the participation of large international banks and bring in international wealth management experience for Taiwan.
      All 12 banks that have been approved for starting this business including CTBC Bank, Mega International Commercial Bank, Shanghai Commercial and Savings Bank, Cathay United Bank, First Commercial Bank, Taiwan Cooperative Bank, UBS AG Taipei Branch, E.SUN Commercial Bank, Taipei Fubon Commercial Bank, Yuanta Commercial Bank, Hua Nan Commercial Bank, and HSBC Bank (Taiwan) have commenced operations. As of the end of April 2024, 8,330 customers have been reviewed and recognized by banks as high-asset customers. Their total assets under management (AUM) was approximately NT$1.0387 trillion, which was 5 times larger than the AUM of NT$207.7 billion as of the end of 2021.
      In terms of financial products, in view of the demand for investment of citizens, domestic banks have generally played the role of selling products issued by foreign financial institutions. To increase banks' ability to design products, the “New Wealth Management Plan" established in 2020 relaxed the standards for banks' issuance of products to achieve the goal of "Taiwanese wealth managed by Taiwanese people". As of the end of April 2024, 6 banks have independently issued several foreign-currency-denominated bank debentures linked to derivative financial or be processed as structured bonds based on the needs of high-asset customers, and the linked underlying assets have been expanded from interest rates and exchange rates to equities. In addition, the overseas branches of 2 banks have issued several customized offshore structured products for high-asset customers to include in their asset portfolios.
      In terms of talent cultivation, banks hire professional talents with private banking experience, and professionals in the finance industry also actively participate in the professional competence certification mechanisms established jointly by the Bankers Association of the Republic of China and Taiwan Academy of Banking and Finance to obtain professional competence certificates. Taiwan Academy of Banking and Finance also enhanced international partnerships to introduce the latest courses and seminars on practical operations to cultivate more professional talents.
      The FSC states that allowing banks to conduct wealth management business for high-asset customers can expand the scale of wealth management business in Taiwan and enhance the international competitiveness of domestic banks. It also expects banks to continue to conduct this business based on the spirit of sustainability and a culture of integrity. As high-asset customers expect their asset allocation to meet sustainability values, banks should also link the development and choices of their wealth management products with sustainability. In addition, a culture of integrity is the most important foundation of wealth management businesses. Only by building a culture of integrity can banks maintain customers' trust in financial institutions and promote sustainable business development.
      The FSC stated that the changes in the international financial environment affect the flow of funds and asset allocation. The wealth management products provided by banks have significantly satisfied the wealth management needs of citizens due to the talent pool of professionals built up in Taiwan, improvements in the capacity and technologies for wealth management and new product design, and relaxation of regulations in recent years, which contributed to the continuous growth in AUM. The FSC will continue to study regulatory adjustments and relax requirements for products and procedures to enhance the service capacity of financial institutions and expand the reach and comprehensiveness of financial products and services. These measures will create an environment to attract and retain funds in Taiwan and contribute to positive growth in the industry.