Taiwan’s Financial Supervisory Commission (FSC) is set to come up with a new rule that will require the island’s offshore fund managers to pull out products that make little contribution to the local market.
The new initiative will require firms to withdraw funds that source less than 50% of their assets from local investors.
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The new rule, which is targeted at increasing engagement of offshore managers with the local market, is scheduled to be effective from January 1 of next year, Asia Asset Management reported citing a report from Commercial Times.
The rule has triggered several offshore managers to join an incentive scheme launched in 2013, that boosts them to strengthen business ties in the country and circumvent the directive.
The incentive programme encourages foreign fund houses to establish offices in Taiwan, or to strengthen the functions of their master agent.
The plan requires offshore managers to comply by various assessment criteria such as increasing investments in Taiwan, assisting in upgrading the scale of AUM on the island, and enhancing quality of its services to local investors.
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