Taipei,Sept.21,2012(CENS)--The Financial Supervisory Commission(FSC)publicized Taiwan-based wealth-management platform program for local people yesterday(Sept.20),which will meet wealth-management demand of local people via five major measures,including allowance for linkage of offshore structured products to Taiwanese stocks and allowance for linkage of domestic and offshore structured products to interest rates,exchange rates,and stock prices of mainland China.
Lee Jih-chu,vice chairperson of the FSC,noted that the Executive Yuan(the Cabinet)has approved the program,adding the FSC and related government agencies will jointly implement the program.The goal of the program is to enable local people entrusting domestic financial institutions to manage their money via the provision of global wealth-management services.
The wealth-management program will cover the three aspects of personal wealth management,collective management,and forex market.Concrete liberalization measures include allowance for linkage of offshore structured products with Taiwanese securities and allowance for domestic and offshore structured products with interest rates,exchange rates,and stock prices in mainland China.The FSC will study corresponding measures with the Central Bank of China(CBC)jointly.
Although offshore structured products are issued by foreign financial institutions,the liberalization will enable domestic financial institutions to secure the opportunity for joint design and management of the products.Chang Kuo-min,deputy director general of the Banking Bureau,the FSC,expressed that after linkage with Taiwanese stocks,foreign issuing institutions will usually establish their investment position,for the consideration of risk hedging.Therefore,foreign institutions will increase their investment in Taiwanese stocks,boosting the domestic stock market.
For issuance of products which can be purchased by the general public,the condition for credit rating of the issuing institutions will be stricter.Presently,domestic securities firms are already able to issue domestic structured products linking with Taiwanese stocks.The allowance for offshore structured products to link with Taiwanese stocks will lead to diversification of products.
To bolster the development of domestic investment trust industry,the FSC will assist domestic assets-management firms to obtain the entrustment of the four major public funds for overseas investments.
Following the establishment of cross-Strait currency clearance mechanism,the FSC will successively lift the restriction on the issuance of renminbi-denominated financial products,including domestic mutual funds,domestic structured products,offshore structured products,international bonds,and investment-oriented insurance policies,so that local people can obtain the services for related financial products,without the need of going abroad.
