Taiwan is moving towards becoming the asset management center of Asia! FSC: Kaohsiung trial zone initiated, further enhancing financial competitiveness.

The Financial Supervisory Commission (FSC) of Taiwan issued a press release on Jan. 22, stating that Taiwan has globally competitive industrial foundations, abundant private wealth, and sufficient investment momentum. These three core strengths are becoming the driving force behind the development of Taiwan's finance and economy. The FSC has proposed two core goals of "retaining wealth and attracting investment" and "investing in Taiwan to support industrial development", committed to building an asset management center with Taiwan characteristics.

Asset management five major strategies released: high asset business welcomes new opportunities

In order to promote Taiwan as the asset management center of Asia, the FSC has proposed five promotion strategies for wealth management business. Among them, expanding the development of high-asset business is an important part. The FSC recently revised the "Regulations for Banks to Handle Financial Products and Services Applicable to High-Asset Customers", relaxing the sales targets for banks issuing structured financial bonds and lowering the qualification threshold for applying for high-asset business, further encouraging banks to enter the high-asset customer market.

Kaohsiung trial zone established: local and central governments work together

The Financial Supervisory Commission has selected Kaohsiung City as the first local asset management pilot zone, with full support from the Kaohsiung City Government. The Financial Supervisory Commission encourages banks to set up business outlets in the Kaohsiung zone to conduct pilot tests for specific financial services and cross-border financial services, forming a financial cluster. Through collective creativity and resource sharing, the zone will further enhance the competitiveness of Taiwan's financial industry, while guiding domestic and foreign funds to invest in local characteristic industries and promote local economic development.

Four major service modes in the zone enhance market attractiveness

The FSC convened a meeting on January 16, inviting the central bank, the Kaohsiung City Government, and 19 banks to discuss the conditions and scope of business for banks entering the special zone, and to plan four major service highlights:

1. One-Stop Financial Services

Banks in the pilot zone can provide high-net-worth clients with more convenient financial services, including: - OBU (Offshore Banking Unit) for trading foreign currency bonds and private equity fund sales. - Clients can purchase unlisted financial products through trusts, exempt from pre-listing review requirements for products.

2. Flexible use of funds

Banks can provide a more diverse range of financing options for high-net-worth clients, such as life insurance financing, premium financing, and quality borrowing business with specific trust benefits as collateral, and the loan-to-value ratio is no longer limited to 50%.

3. Cross-border financial services

Banks can assist customers in the special zone in conducting cross-border financial transactions, such as: - Promoting financial products and services of overseas branches. - Handling the confirmation and delivery of account opening and transaction documents for special zone customers.

4. Diversified service provider

The area bank can also cooperate with the international securities and insurance business subsidiaries within the same financial group to provide joint account opening and marketing services. In addition, family office-related services such as wealth management, tax, and legal advice are also included in the scope of business.

The zone is set with a six-month to one-year observation period

The FSC stated that the results of the trial operation will be observed for six months to a year. If it is proven to have a positive impact on market development, relevant laws and self-regulations will be further amended to ensure the legalization of the trial operation. At the same time, the FSC hopes to attract more funds to the Taiwan market through the one-stop service, flexible fund utilization, and diversified services in the trial area.

Asia Asset Management Center Vision: Achieving Major Breakthroughs in Six Years

The Financial Supervisory Commission hopes that this trial zone will inject more innovation and vitality into Taiwan's financial industry, and pave the way for the goal of 'significant changes in two years, major transformations in four years, and achievements in six years'. In the future, Taiwan will steadily move towards becoming an Asian asset management center, continuously attract global investment opportunities, and create new economic momentum.

This article Taiwan moves towards the Asian asset management center! FSC: The launch of the Kaohsiung test zone will enhance financial competitiveness. Originally appeared on Chain News ABMedia.