On 30 September 2022, the Financial Supervisory Commission (FSC) announced the draft amendments to Regulations Governing Offshore Funds for consultation. Any opinion can be presented in 60 days after the announcement. We summarize below:
(1)Master Agent: To add a restriction that a master agent can only represent offshore funds for public offering and sales managed by up to five (5) offshore fund management companies. Where the number of offshore funds management companies are 4 or 5, additional amounts of operating bond will be required respectively. The calculation of the operating bond shall be based on the number of group enterprise with which the offshore fund management companies are affiliated.
(2)Sales Agent: To specify that companies issuing shares without par value to serve as sales agents of offshore funds shall have a net value of no less than NTD10 per share.
(3)Offshore Fund Management Company: For the “no-sanction in the past two years” qualification for offshore fund management companies, the sanction shall be limited to that in relation to assets management business.
(4)Application Documents: To delete the required documents in relation to sales agents upon the filing for new fund registration. The filing for the sales agent is only required to be filed with the Securities Investment Trust & Consulting Association (SITCA) after the new fund registration has been approved.
Mike Lu/Jeffrey Liu