The Financial Supervisory Commission issued an Interpretive Letter for Article 9 of the Regulations Governing Insurance Enterprises Engaging in Transactions Other Than Extending Loans to Interested Parties, per the letter Ref. No. Jin-Guan-Bao-Cai-Zi No. 10602503051 dated August 25, 2017. The main stipulations are as follows:
According to Article 9 of the Regulations Governing Insurance Enterprises Engaging in Transactions Other Than Extending Loans to Interested Parties, insurance enterprises engaging in transactions other than extending loans to interested parties shall submit documents evidencing "the terms of the transaction are not more favorable than those offered to similarly situated counterparties" to the board of directors or the personnel engaging in investment decision making for reference. When conducting any of the following transactions, the management of an insurance enterprise may assess the reasonableness of the transaction price itself and needs not to provide evidencing documents:
1. Spot foreign exchange transactions between the insurance company and the bank subsidiary or the securities subsidiary under the same financial holding company: The terms of the transaction are in line with market practice and the transaction price is not deviating from the spot foreign exchange prices of interbank market. The designated foreign exchange bank conducting such transactions shall set the standards for price negotiation for interested parties conducting such transactions and submit the same to the board of directors for approval.
2. A small-sum transaction under NT$10,000.
3. Transactions in relation to the non-negotiable fixed charges for services including public transportation (e.g. high speed rail), telecommunications and internet, and utilities.