萬國法律事務所

　　On Dec. 5, the Financial Supervisory Commission (FSC) relaxed insurance companies’ utilization of funds rules, a move that is expected to encourage the investment of about NT$70 billion (US $2.2 Billion) in the securities, real estate, and other markets. It is predicted that this relaxation will increase the efficiency of funds utilization in the insurance industry.

　　Under the new FSC revision of the Regulations for Credit Lines Extendable by Insurance Enterprises in Making Loans to and other Transactions with the Same Person, except for government agencies, the ceiling on the sale or purchase of securities, real estate, or other assets conducted by an insurance enterprise with the same person, same interested party, or same affiliated enterprise, is raised from 30% to 35% of stockholder equity in the insurance enterprise.  In addition, the ceiling on the aggregate amount of such transactions is boosted from 60% to 75% of stockholder equity. The ceiling on the total amount of transactions with stakeholders remains unchanged at 40% of stockholder equity.

　　Responding to the needs of insurance enterprises with relatively low amounts of equity, the ceiling is maintained at NT$100 million (US $3.1 million) for single transactions and NT$200 million (US $6.2 million) for aggregate transactions. This will offer local small and medium enterprises as well as foreign insurance companies greater flexibility in the use of funds.