{"id":6121,"date":"2026-05-22T20:04:24","date_gmt":"2026-05-22T12:04:24","guid":{"rendered":"https:\/\/www.lexgroup.com.tw\/6121\/"},"modified":"2026-05-22T20:22:34","modified_gmt":"2026-05-22T12:22:34","slug":"%e6%83%87%e5%ae%89%e6%b3%95%e4%bb%a4%e9%9b%99%e9%80%b1%e5%88%8a-%e7%ac%ac488%e6%9c%9f","status":"publish","type":"post","link":"https:\/\/www.lexgroup.com.tw\/en\/6121\/","title":{"rendered":"Lexgroup Newsletter (Issue No. 488)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong><strong>Trust<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1.<strong><em><u>Press release on successive beneficiary trusts<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 5 May 2026, the Financial Supervisory Commission (FSC) issued a press release on &#8220;successive beneficiary trusts&#8221; (also known as &#8220;century trusts&#8221;).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the press release, the Executive Yuan has reached an inter-agency consensus on the framework and tax treatment principles applicable to successive beneficiary trusts, marking another important step in Taiwan\u2019s efforts to develop itself into an &#8220;Asian Asset Management Center.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A &#8220;successive beneficiary trust&#8221; refers to a trust structure under which beneficial interests may pass successively to different generations of family members pursuant to the terms of the trust agreement, thereby enabling the long-term management and succession of family assets across generations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The authorities confirmed that, provided the trust agreement clearly specifies the trust duration (up to 100 years) and the conditions for changes in beneficial interests, and the settlor and beneficiaries do not retain substantive control or influence over the trust assets during the trust term, the acquisition of beneficial interests by subsequent beneficiaries upon satisfaction of the agreed conditions will, in principle, not trigger gift tax or estate tax implications.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reported by: Alex Li \/ Zoe Chen<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Securities<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2.<strong><em><u>Amendment to Directions for Futures Trading by Overseas Chinese and Foreign Nationals<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 30 April 2026, the FSC announced the amendment to Point 9 of the &#8220;Directions for Futures Trading by Overseas Chinese and Foreign Nationals&#8221;, which provides that offshore overseas compatriots and foreign nationals may agree with the futures commission merchants (FCM) to use their offshore deposit accounts to process incoming and outgoing fund transfers for futures trading, not subject to the requirement that such transfers shall be handled through a segregated foreign exchange deposit account for futures trading opened under the name of the custodian as a custody account.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reported by: Stacy Lo \/ Linda Guo<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3.<strong><em><u>Ruling Regarding Articles 17 and 18 of the Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 23 April 2026, the FSC issued a ruling regarding Articles 17 and 18 of the &#8220;Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals&#8221;, which provides that custodians designated by offshore overseas compatriots and foreign institutional investors (FINI) pursuant to Article 17 of the Regulations Governing Investment in Securities by Overseas Compatriots and Foreign Nationals may receive foreign currency cash dividends on their behalf, and remit such dividends to the offshore foreign currency deposit accounts designated by the overseas compatriots or FINIs, or to domestic foreign currency deposit accounts opened in accordance with relevant regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reported by: Stacy Lo \/ Zoe Chen<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Financial<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4.<strong><em><u>Amendment to Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 6 May, 2026, the FSC amended the &#8220;Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries&#8221;, incorporating the spirit of the &#8220;Three Lines&#8221; internal control model.\u00a0 We summarize as follows<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(1) Simplification of the relevant requirements regarding the signatories of the declaration on internal control system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(2) Revision of the \u201cThree Lines of Defense\u201d to the \u201cThree Lines Model.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(3) Boards of directors and management shall implement the principles of fair customer treatment and establish codes of ethical conduct and integrity management.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(4) Amendment to internal control system regulations and handling guidelines, including sustainable information management and operational continuous management mechanism.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(5) Amendment to the contents and procedures for self-assessment conducted by second-line function, including legal compliance, risk control and information security units.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(6) Financial holding companies and banks shall establish legal compliance units, which may concurrently handle fraud prevention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(7) Banks shall establish legal compliance risk management and supervisory framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(8) To specify the details of risk management structure of financial holding companies and banks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(9) A chief risk officer shall be appointed, and the responsibilities and authority of the dedicated risk management unit is under the general manager.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(10) Risk management mechanisms shall include the identification, assessment, and measurement of emerging risks, and adopt corresponding risk response strategies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(11) Financial holding companies shall appoint a chief information security officer and establish a dedicated information security unit under the general manager, with clearly defined responsibilities and authority.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(12) When there is a change in the chief auditor, the reasons and details of the change shall be reported to the competent authority, and communication channels and mechanisms between independent directors, the Audit Committee or supervisors, and the internal audit unit shall be established.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(13) Certified information systems auditors may serve as internal auditors, and the upper limit on the proportion of internal auditors qualified as former audit staff of accounting firms, computer programmers, or systems analysts is relaxed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(14) Internal audit reports for general audits conducted by the internal audit unit shall disclose items including information security and sustainability information management.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(15) When CPAs conduct special reviews of internal control systems, personal data protection, and money laundering prevention and counter-terrorism financing mechanisms, they shall provide a reasonable assurance report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(16) Rewards for the discovery of major frauds or deficiencies in financial institutions shall not be limited to internal auditors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(17) Flexible provisions are stipulated for the application of these regulations to branches of foreign banks in Taiwan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(18) Applicable transitional periods for specific provisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reported by: Stacy Lo \/ Hank Chang<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Insurance<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">5.<strong><em><u>Amendments to Regulations Governing Qualification Requirement and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of Insurance Enterprises<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 8 May 2026, the Financial Supervisory Commission announced the draft amendments to Article 8-1 of the &#8220;Regulations Governing Qualification Requirement and Concurrent Serving Restrictions and Matters for Compliance by the Responsible Persons of Insurance Enterprises,&#8221; which amends the specific professional fields originally listed therein to &#8220;specific professional fields&#8221; and adds an authorizing provision for the competent authority to separately prescribe the scope thereof.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Reported by: David Tsai \/ Sean Tsai<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Financial<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">6.<strong><em><u>Amendments to Paragraphs 7 and 8-2 of the Directions Governing Custodian Institutions and Investment Targets of Separate Accounts for Investment-Linked Insurance Products.<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 29 April, 2026, the Financial Supervisory Commission (FSC) amended Paragraphs 7 and 8-2 of the Directions Governing Custodian Institutions and Investment Targets of Separate Accounts for Investment-Linked Insurance Products. We summarize key points below:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(1) Investment-linked insurance products linked to foreign bonds are prohibited from investing in Total Loss Absorbing Capacity (TLAC) bonds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(2) The scope of investment restrictions applicable to funds linked to investment-linked insurance products has been expanded. In addition to the existing restrictions on non-investment grade bond funds and emerging market bond funds, the amendments further include ETFs, index funds, and actively managed ETFs in which non-investment grade bonds or emerging market sovereign bonds account for 60% or more of the fund\u2019s net asset value (or of the weighting of the underlying index constituents).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(3) Where an insurer entrusts the management and utilization of dedicated account assets to a discretionary investment management enterprise, the aggregate investment cap for the above funds remains at 20%, of which the investment cap for funds with 60% or more exposure to non-investment grade bond-related assets (based on the fund\u2019s net asset value or the weighting of the underlying index constituents) remains at 10%. Investment-linked insurance products not falling within the foregoing circumstances are prohibited from investing in the above funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reported by: David Tsai \/ Maggie Tsai<\/strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">7. <strong><em><u>Simplification of Application Documents Required for Master Agents Filing in Taiwan<\/u><\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On 8 May, 2026, the Financial Supervisory Commission (FSC) announced amendments to the documentation requirements applicable to offshore fund master agents applying for approval to offer and sell offshore funds in Taiwan. The amendments took immediate effect upon announcement.\u00a0 The key focus of the amendment is the simplification of application documentation requirements, including allowing financial reports and prospectuses to be provided with relevant pages only, and exempting certain documents from redundant submission if they were previously approved. Furthermore, implementation status of personnel training plans are now replaced by a review statement issued by the internal auditor. Additionally, certain documentation requirements have been removed, and the completion method for the self-assessment checklist has been streamlined. Master agents planning to submit applications in the near future should take note of these changes and adjust their filing practices accordingly to facilitate a smoother application process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reported by: Jeffrey Liu \/ Emilie Chang<\/strong><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Editors:<\/strong> <br><strong>Mike Lu\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(Partner)<\/strong> <br><strong>Stacy Lo\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(Partner)<\/strong> <br><strong>Jeffrey Liu\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (Partner)<\/strong> <br><strong>Kang-Shen Liu\u00a0\u00a0\u00a0 \u00a0\u00a0(Partner)<\/strong> <br><strong>David Tsai\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0(Partner)<\/strong> <br><strong>Angela Lin\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(Partner)<\/strong> <br><strong>Paul Hsu\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(Partner)<\/strong> <br><strong>Alex Li\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(Partner)<\/strong><\/td><td><strong>Counselors:<\/strong> <br><strong>Echo Yeh<\/strong> <br><strong>Sue Su<\/strong> <br><strong>Jolene Wang (Lexcel Partners IP Firm)<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Trust 1.Press release on successive beneficiary trusts On 5 May 2026, the Financial Supervisory Commission (FSC) issued a press release [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":628,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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