Taiwan’s Financial Supervisory Commission (FSC) is poised to revise the ‘Regulation Governing Securities Investment Trust Fund’ regulation to encourage mergers between small-sized funds, according to Economic Daily News.
Under the new regulations, mergers between funds with AUMs of less than NT$500 million are exempted from convening beneficiary meetings or alternately, fund managers can directly submit merger applications to the FSC.
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About 166 out of Taiwan’s 627 domestic mutual funds have AUM of less than NT$500 million (US$16.6 million).
Wu Quei-mao, chief secretary of the FSC’s said that the administrative costs of small-size funds can be reduced through mergers and consolidations.
At the same time, FSC has also increased the threshold on small-size funds from NT$300 million to NT$500 million in order to raise the scheme’s coverage.
Wu added that under current regulations, only funds with underlying investments within a single region are allowed to consolidate. The amended regulation will remove this restriction.
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By GlobalDataThe new regulations will come into effect on 1 October 2013.
