萬國法律事務所

During a seminar held on 11 January 2011 by Taiwan’s Financial Supervisory Commission (FSC), a number of financial holding companies (FHCs) suggested that the investment target for Taiwanese FHCs and banks in the People’s Republic of China (PRC) should not be limited to only one company. This suggestion was offered to allow Taiwanese FHCs and banks to package investments in financial advisory and credit underwriting companies and the like in order to offer Taiwanese businesses in the PRC more diversified and comprehensive financial services. The FSC indicated that it will discuss and review the suggestions received with an open attitude.

Based on the current regulations, Taiwanese FHCs and banks may only invest in PRC financial institutions but not in related financial sectors. Although non-bank subsidiaries of banks and FHCs may invest in related financial sectors, the investment is limited to one company and the holding must exceed 25%. Related financial sectors include, among others, financial leasing, asset management, asset services, financial consulting, factoring, financial information services and forex brokers.

Businesses in the financial holding sector pointed out that, in terms of the development strategies in the PRC, different types of related financial service businesses need to be packaged in order to offer comprehensive financial services to Taiwanese businesses in the PRC. However, with the current restrictions on investment, no such strategic planning is possible or permitted.