Taiwan: FSC to allow more channels for insurers to raise capital
Source: Asia Insurance Review | Apr 2024
The Financial Supervisory Commission (FSC) has opened the door for the insurance industry to issue bonds of a capital nature through the establishment of special-purpose vehicles abroad.
Taking into account the limited appetite of the domestic bond market, the FSC will amend the ‘Things to Note on Insurance Companies Issuing Capital Bonds’ to increase channels for the insurance industry to strengthen capital, the regulator says in a statement.
An insurer may issue capital bonds by establishing a special-purpose financing unit overseas and may provide guarantees for the capital bonds. Approval from regulators is required for establishing the special-purpose vehicle.
As the establishment and management of the special purpose vehicle falls within the scope of foreign investment, the Association will subsequently amend the ‘Insurance Industry Overseas Investment Management Measures’ in accordance with administrative procedures. A