On 3 October 2023, the Financial Supervisory Commission (FSC) announced a ruling based on Sub-paragraph 9, Paragraph 1, Article 23 of the Regulations Governing Offshore Funds to transform the content of the offshore fund substantial review principle into a formal ruling (Ruling). The Ruling stipulates the investment restrictions for six types of offshore funds, including equity fund, fixed-income fund, high yield bond fund, emerging market bond fund, balanced fund and money market fund. We summarize the major changes below:<\/p>\n\n\n\n
1.Fixed-income fund: Unless otherwise provided by laws and regulations, a fixed-income fund may not invest in stocks and equity type securities;<\/p>\n\n\n\n
2.Restriction on investment in Rule 144A bonds: The said restriction shall apply to fixed-income fund, high yield bond fund, emerging market bond fund and balanced fund;<\/p>\n\n\n\n
3.Money market fund: To remove the exception that the investment or deposit may be increased up to 20% of the Fund\u2019s NAV if the company or the financial institution meets the credit rating requirements prescribed by the FSC. Which means that the percentage can only be 10% .<\/p>\n\n\n\n
The Ruling took effect form October 3 and only applicable to the fund registration filed\/reported afterwards.<\/p>\n\n\n\n
Mike Lu\/Jeffrey Liu\/Amy Su<\/p>\n","protected":false},"excerpt":{"rendered":"
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