The Financial Supervisory Commission (hereinafter referred to as FSC) amended Article 5 and Article 7 of the "Regulations Governing Banks Conducting Financial Products and Services for High-Asset Customers" to streamline the operating procedures for banks to provide financial products suitable for high-asset customers and encourage major international banks to participate in the domestic wealth management market for high-asset customers. The period of public comments of the Regulations was completed and the amendment will soon be promulgated. The key points of the amendment are as follows:
    1. The underlying assets of Taiwan-equity linked derivatives denominated in foreign currencies (including structured products) processed by offshore banking units (OBUs) as specified in Article 5, Paragraph 1, Subparagraph 1 of the Regulations shall be limited to Taiwan stock market indexes (including products of Taiwan stock market indexes listed in foreign exchanges) or exchange-traded funds (ETFs), and the pricing, clearing, and settlement must be conducted in foreign currencies. According to market practices, the derivatives do not involve the physical delivery of securities and investors do not obtain domestic securities, which is different from the situation considered under the registration regulations for overseas Chinese and foreign nationals investing in domestic securities in the "Regulations Governing Investment in Securities by Overseas Chinese and Foreign Nationals". The FSC therefore added a provision that if the high-asset customers are overseas Chinese or foreigners, they shall be exempted from the requirement to complete registration procedures with Taiwan Stock Exchange Corporation to streamline customers' investment procedures. (Article 5 of the amended articles)
    2. The amendment expanded the scope of entities eligible for the investment and talent recruitment clause. If the bank filing the application to the FSC for conducting the business or its head office, parent bank, or group is ranked among the top 50 banks globally in terms of capital or assets in the year prior to the application, the bank shall be exempted from the requirement of attaining a certain level of assets under management. (Article 7 of the amended articles)
    The FSC stated that the amendment will increase the banks' efficiency in providing high-asset customers with financial products, appropriately increase the participation of large international banks in the domestic wealth management market for high-asset customers, and acquire international wealth management experience for Taiwan to continuously promote the development of the industry.