1. Future Commission Merchants Allowed to Sign Customer-Introduction Contracts with Overseas Financial Institutions Permitted by Their Home Authorities to Operate Securities or Futures Business
On 16 February 2016, the Financial Supervisory Commission (FSC) issued an order allowing future commission merchants (FCMs) to sign contracts with overseas financial institutions permitted by their home competent authorities to operate securities or futures business, to contract for the introduction of customers to the FCM. The order also allows FCMs to sign such customer-introduction contracts with subsidiaries belonging to the same financial holding company as the FCM, under the rubric of cross-selling. An FCM furthermore may pay part or all of its commission as compensation for such introductions.
2. FSC Eases the Scope of Collateral and Loan Limits for Securities-Based Lending Business Conducted by Securities Finance Enterprises
On 28 January 2016, through its Order No. Financial-Supervisory-Securities- SITC-1050001676, the FSC eased the scope of collateral and loan limits for non-purpose securities-based lending business conducted by securities finance enterprises. This easing will help securities finance enterprises utilize their funds more efficiently and expand their business niche.