The Financial Supervisory Commission (FSC) amended the Regulations Governing the Use of Insurer’s Funds in Special Projects, Public Utilities and Social Welfare Enterprises by issuing an order (Ref. No.: Jin-Guan-Bao-Cai-Zi-10602505871) dated December 29, 2017. The amendment aims to expand the multiple investment channels through which insurers’ funds can be used and to enhance the efficiency in the use of insurers’ funds as well as simplify the operating procedures therefor. The main stipulations of the amendment are as follows:
1.Amendment to Article 5: Insurers are permitted to invest in long-term care service institutions established according to law and to invest in other limited partnerships complying with the rules set forth by the competent authority when investing in a special project and public utilities (for example, domestic funds which invests in green energy technology, Asia Silicon Valley, biotechnology and pharmaceutical industries, defense industry, smart machinery, innovative agriculture and circular economy and are offered by a national investment company invested in by the National Development Fund, Executive Yuan as approved by the Executive Yuan).
2.Amendment to Article 7: The rules for the maximum investment made by insures in the above investment target
(1)An insurer's investment in long-term care service institutions established pursuant to law may not exceed 5% of its funds and the ownership in such institution generally may not exceed 10% of the paid-in capital thereof.
(2)An insurer's investment in limited partnerships may not exceed 2% of its funds. If the investment target is among the limited partnerships subject to the rules established by the competent authority, the investment in such limited partnership may not exceed 25% of the paid-in capital thereof.
3.Amendment to Article 10: After the amendment, insurers may file their investments with the Insurance Bureau (“IB”), FSC for subsequent review.
(1)The objective of this amendment is to enhance insurers’ efficiency in investing in special projects and public utilities and to simplify the operating procedures therefor. The IB may otherwise stipulate the circumstances under which the use of insures’ funds can be filed for subsequent review.
(2)The subsequent review is applicable to an insurer’s investment in venture capital enterprises and other limited partnerships subject to rules set forth by the competent authority, if such investment is worth no more than NT$500 million and no more than 5% of the insurer’s owner’s equity.