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Amendment to ease the “Incentive Policy for Onshore Fund” to encourage investment trust firms to participate

The Financial Supervisory Commission announced the “Incentive Policy for Onshore Fund” (hereinafter, “the Policy”) for encouraging investment trust firms to improve talent and know-how in asset management, expanding the size of asset management and orienting towards internationalization. Investment trust firms satisfying the “Basic Requirements” and the conditions in the 3 areas of, “Investment Research Capacity”, “Global Presence” and “Talent Training” are entitled to related preferential treatment further to the basic preferential treatment. 
The Financial Supervisory Commission will revise the the Policy shortly to promote the participation of small and medium investment trust firms and enhance the competitiveness of the asset management sector of the country. Accordingly, the indicators for assessment and the numerical data for assessment in each aspect were introduced further to the content of the original program. These firms can access basic preferential treatment, including the application for offerings of different types, scopes and ratios of funds with the Financial Supervisory Commission notwithstanding the restrictions on certain funds under laws currently in effect. They may also apply for offering ETF-linked funds, and the principal fund for investment is no longer limited to domestic ETF. This will help small and medium investment trust firms to develop innovative funds with competitive advantages, and to diversify fund products to satisfy the needs of the investors.
The focus of the revision of the the Policy for this instance includes:
I.  Added the provision that investment trust firms ranking among the last 3/4 in terms of average scale of asset management in the previous year and meeting the “Basic Requirements” and conditions in 2 of the 3 areas of “Investment Research Capacity”, “ Global Presence”, and “Talent Training” that have applied with the Financial Supervisory Commission and obtained approval are entitled to the basic preferential treatment.
II.  The easing of the standard for the evaluation indicators for small and medium investment trust firms:
(I) The evaluation indicator of “Investment Research Capacity”: the standard of the average size of the investment research team in the last 3 years was eased, reduced from 25 persons to 15 persons. The standard that asset scale growth in the previous year must be a positive integer was deleted. These firms are only required to achieve overall growth of market scale.
(II) The evaluation indicator of “Global Presence”: previously, foreign capital entrusted to investment trust firms for investment consulting services had to be no less than NT$18 billion in asset scale under consulting in the most recent year; this was reduced to NT$9 billion. Investment trust funds offered by foreign investment trust firms in the country in the previous year was previously required to be no less than NT$4 billion; this was reduced to NT$2 billion.
(III) The evaluation indicator of “Talent Training”: the expense for internal talent development was set at 1.5% of the net income of the investment trust firms and is now still in effect, but the minimum amount of NT$1,000,000 was reduced to NT$500,000.
The Financial Supervisory Commission will continue to advocate and encourage investment trust firms to apply actively with the expectation of encouraging domestic investment trust firms to continue their effort in improving the capacity of investment research, development of international business and active training of asset management talent in the industry, to move the nation’s investment trust industry forward and enhance the overall competitiveness of the asset management industry as a whole.

Contact: Lin Hsiao-Yun, Section Chief, Securities investment trust and consulting division, Securities and Futures Bureau 
Telephone: 2774-7320
Should you have queries, please write to: FSCMAIL
Visitor: 346   Update: 2021-06-21