Taiwan’s Financial Supervisory Commission (FSC) announced last week that nine overseas asset managers have received privileges for their on-the-ground businesses.
The nine firms include Alliance Bernstein, Allianz Global Investors, Schroders, Invesco, UBS Asset Management, JP Morgan Asset Management, Fidelity International, Franklin Templeton Investments and NN Investment Partners.
Last year, seven asset mangers were awarded by the regulator. Eastspring is the only firm from last year’s list that was not chosen this year.
“Eastspring Investments has been recognised in this list for the past three years. Whilst we did submit this year, unfortunately we were not selected,” spokeswoman for Eastspring told FSA.
“We remain confident in the Taiwanese market and we will submit again in 2020. We look forward to continuing to support the growth and development of the Taiwan asset management industry,” she added.
The FSC launched the Deep Cultivation Plan in 2013 to encourage foreign fund houses to commit to the domestic fund industry and narrow the gap between the onshore (locally-domiciled) and offshore (such as Ucits funds) markets.
After each annual review of foreign asset managers, the regulator gives out benefits to reward those firms that show a commitment to the domestic market.
The plan is based on eight criteria, covering three broad categories: Taiwan onshore presence; local assets under management; and cultivation of local talent.
Winners must pass the basic threshold for these three categories, and at least four criteria in total, to gain one incentive from a choice of seven. Those that meet five criteria or more can choose two benefits, which is the maximum number a firm can hold at one time.
The incentives include introducing new types of funds, faster approval of funds, ability to submit more products for approval at one time, and a higher allowance for taking exposure to mainland Chinese securities, according to the FSC.
This year Alliance Bernstein met six of the eight criteria, while Allianz Global Investors, Schroders, Invesco and UBS Asset Management met five.
Alliance Bernstein, Allianz Global Investors, Schroders and Invesco all chose the incentive of introducing new types of funds. Alliance Bernstein also chose the privilege of faster approval of funds, and Allianz Global Investors and UBS Asset Management were awarded the ability to submit more products for approval at one time. Schroders, Invesco and UBS Asset Management obtained a higher allowance for taking exposure to mainland Chinese securities.
JP Morgan Asset Management, Fidelity International, Franklin Templeton Investments and NN Investment Partners fulfilled four assessment criteria. All of them selected the benefit of introducing new funds.
All the selected privileges are valid from 1 October 2019 to 30 September 2020.
| Firm | Benefit | Benefit |
| Alliance Bernstein | Introduce new types of funds | Faster approval of funds |
| Allianz Global Investors | Introduce new types of funds | Ability to submit more products for approval at one time |
| Schroders | Introduce new types of funds | Higher allowance for taking exposure to mainland Chinese securities |
| Invesco | Introduce new types of funds | Higher allowance for taking exposure to mainland Chinese securities |
| UBS Asset Management | Ability to submit more products for approval at one time | Higher allowance for taking exposure to mainland Chinese securities |
| JP Morgan Asset Management | Introduce new types of funds | / |
| Fidelity International | Introduce new types of funds | / |
| Franklin templeton | Introduce new types of funds | / |
| NN Investment Partners | Introduce new types of funds | / |
Source: FSC
