Securities investment trust enterprises (SITEs), securities investment consulting enterprises (SICEs), managed futures enterprises (MFEs) and trust enterprises will no longer need to file for separate approvals to undertake discretionary management of New Taiwan dollar funds for investment in offshore negotiable securities. The Central Bank recently issued a decree easing the pertinent regulations to make it easier to conduct related business, in order to help open up greater business opportunities for these types of investment enterprises.
The Central Bank said that since the business of discretionary investment in overseas negotiable securities by SITEs and SICEs had now developed to maturity, the procedure for conducting it could be made simpler. Therefore, the Central Bank issued this decree to related associations to relax the mode of approval adopted for such type of investment. Henceforth, SITEs, SICEs, MFEs and trust enterprises will no longer need to file for separate approvals to conduct discretionary investment of NT dollar funds in offshore negotiable securities. However, the payment of related trust funds between the enterprises and entrustors must be made in NT dollars, and may not be made in foreign currency.
The investment enterprises must still conduct inward and outward remittances in accordance with the provisions of the Regulations Governing the Declaration of Foreign Exchange Receipts and Disbursements or Transactions and other pertinent regulations, and if the cumulative amount of purchase or sale settlements reaches an annual total in excess of US$5 million for an individual or US$50 million for a corporation, special-case approval must still be obtained from the Central Bank.
In addition, if a trust enterprise conducts such business through a collective management account for entrusted funds, and receives and pays out trust funds in NT dollars for investment in overseas securities, it must apply through a designated bank to the Central Bank for approval before it can make a settlement remittance.