The Financial Supervisory Commission (FSC) issued a ruling (Ref. No. Jin-Kuan-Pao-Tsai-10402502361) on 6 March 2015 to explain the Principle for Handling of and Standard for Real Estate Investment Conducted by Insurance Enterprises with Respect to Immediate Use and Earnings, effective on the same date and the FSC ruling issued on 19 February 2014 (Ref. No. Jin-Kuan-Pao-Tsai-10302501261) expired on the same date. Summary of main points of the explanation are as follows:

1.  If the real estate is usable and being used, and the rate of return on investment is reasonable, such real estate investment meets the standard of "immediate use and earnings." The annual rate of return used to determine the reasonableness of rate of return on investment shall be the annual rate of return on the first business day of the month of lease.

2.  With respect to real estate acquired after 19 November 2012,

  1. upon acquisition of usable real estate, an insurance enterprise is not allowed to transfer the ownership of such real estate within 5 years after the date of acquisition or the date on which the real estate is categorized as real estate for self-use, unless meeting one of the exceptions and obtaining competent authority's approval.
  2. amendment of the requirements for an insurance enterprise to invest in vacant land.
  3. amendment of the time frame, investment requirement and standard of reasonable rate of return on investment for an insurance enterprise to invest in specific real estate.

3. Amendment of the matters to be reported to board of directors or approved by board of directors for an insurance enterprise to conduct real estate investment.