In order to expedite upgrade and transformation of domestic financial industries, the FSC presented the Financial Development Action Plan at the meeting of the Executive Yuan on June 14, 2018. The action plan focuses on 4 dimensions, including “banking industry”, “securities and futures industry”, “insurance industry” and “Fintech”, and addresses critical current issues by establishment of the goals and adoption of corresponding strategies. The action plan has the following related key measures:
1. Banking industry: (1) the FSC is studying the relaxing of regulatory requirements on bank investments in 5+2 industries, the applicable scope of Article 72-2 of the Banking Act, and fund raising for public infrastructure through securitization, in order to support development of public infrastructure; (2) in order to bring into play the wealth management function of OBUs, banks are required to carry out differentiated measures of high-end customers. Meanwhile, related restrictions on financial products will be gradually relaxed and international banking platform will be deployed; (3) banks are encouraged to expand their international financial networks and cooperate with the industries to break into overseas market. Meanwhile, banks are encouraged to set up unit to take charge of anti-money laundering activities and establish systems of global anti-money laundering and combating the financing of terrorism; (4) more incentives are provided for financial holding companies to merge with other financial institutions, internet-only banks are allowed to be established, and financial institutions are encouraged for innovation, in order to increase competitiveness of domestic financial institutions.
2. Securities and futures industry: (1) establishment of the management and control measures for direct investment by mainland Chinese investors in primary listed foreign companies and relaxation of regulatory limits for investments in Mainland China by insiders with R.O.C nationality of primary listed foreign companies or foreign companies registered on the TPEx Emerging Stock Market, in order to create a friendly investment environment; (2) introduction of a continuous trading system and establishment of collective clearing system for OTC derivative products to be in line with international practice; (3) increasing financial innovations and diversifying financial products, such as allowing securities firms to issue Exchange Traded Note (ETN) and allowing contracts of futures linked underlying of warrant to be listed on the Futures Exchange; (4) implementation of the New Version of Corporate Governance Roadmap (2018-2020) ; (5) more incentives to increase willingness of securities firms to merge with other financial institutions; (6) relaxation of regulatory requirements on equity investments in venture capital enterprises and private equity funds by securities firms, in order to encourage investments in domestic industrial entities.
3. Insurance industry: (1) encouraging insurance companies to launch insurance products that cover protection-type, elderly benefits, information security as well as innovative and micro insurance products by rendering favorable preferential reserve interest rate markup and investment limits; (2) creating friendly investment environment to support economic development through investments of insurance industry; (3) promoting insurance technology development and studying the establishment of a “joint insurance information center”; (4) building a new insurance supervision system according to international standards.
4. Fintech: (1) continued promotion of innovative experimentation in order to develop Taiwan as a base of Fintech; (2) establishment of FinTechSpace and Fintech digital sandbox platform for creation of a sound environment for innovative entrepreneurs; (3) planning to hold “FINTECH TAIPEI 2018” to actively strive for international business opportunities.