In order to direct the funds from insurance enterprises to investment in infrastructure projects and considering such investment in infrastructure projects usually requires the investors to set up a special purpose vehicle ("SPV") for the operation of such projects, and since such SPV is not a public company in most cases, it is necessary for the insurance enterprises to supervise and control the SPV for risk management regarding the use of funds. The Office of the President amended Article 146-5 and Article 168 of the Insurance Act, per the letter Ref. No. Zong-Tong-Hua-Zong-Yi-Yi-Zi-10500136231, dated 9 November 2016. The main points are as follows:

1.According to the amendment to Paragraph 4 of Article 146-5 of the Insurance Act, an insurance enterprise engaging in infrastructure projects may:

(1)be or appoint representatives thereof as the director(s) or supervisor(s) of the invested SPV.

(2)exercise its voting rights in the election of director(s) or supervisor(s) of the invested SPV.

(3)serve as trust supervisor of its investment in securitized products.

(4)engage in the operation and management of the invested SPV or its investment in real estate investment trust funds by means of entrustment, delegation, or a contract entered into with a third party, or agreement, authorization, or by other means; provided, however, that the liquidation of such funds is excluded.

2.Limitations or restrictions on insurance enterprises serving as the director or the supervisor of the invested SPV when investing in infrastructure projects:

(1) Where the insurance enterprise or its representative serve as a director or a supervisor, the number of the appointed directors or supervisors of the invested SPV shall not exceed one third of the total number of seats of directors or supervisors in such SPV.

(2) Insurance enterprise cannot appoint managers of the invested SPV.