The Financial Supervisory Commission (“FSC”) announced proposed amendments to parts of the Regulations Governing Securities Investment Trust Funds on August 29, 2013. Major amendments include:

  1. allowing a securities investment trust enterprise (“SITE”) to conduct transactions related to securities products which fall ouside the scope prescribed in Article 5 of Futures Trading Act for purposes of meeting the needs arising from the fund’s investment strategy, provided that such transactions are approved by the FSC;
  2. adding a provision setting forth the basis for and the rules allowing a SITE to borrow short-term loans from a financial institution and to provide collateral to secure such loans;
  3. increasing the maximum amount in which a fund may invest in beneficiary certificates issued by other funds; (4) loosening the restrictions imposed on fund mergers.