To avoid using age as a criterion which may lead to concerns about age labeling, and to facilitate securities firms in expanding customer reach and meeting their customer’s cross-border asset management needs, the FSC has drafted amendments to Articles 14 and 23 of the “Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities.” The advance notice procedure for the draft amendments has been completed, and the amended Regulations will be released and implemented soon. The key points of the amendments are as follows:
1.    The age limit of 70 or below is removed if the principal to whom a securities firm recommends foreign securities is a non-professional investor. (amendment to Article 14)
2.    Foreign securities purchased by securities firms on order from “high net worth juristic person investors” and “high-asset customers-juristic person” may be deposited in a foreign custodians designated by the principals. (amendment to Article 23)
The FSC stated that this amendment eliminates the age-based classification standard. In the future, securities firms should still confirm that the recommended investment target is suitable for the principal based on their professionalism and understanding of the customer and product suitability. The FSC will continue to review securities related regulations to strengthen the competitiveness of domestic business operators while taking into account investor rights.

Contact unit: Section Chief Weng, Securities Firms Division, Securities and Futures Bureau
Tel: (02)2774-7112
If you have any questions, please write to mail