Taiwan unveils privileges for overseas managers

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This year’s beneficiaries are Alliance Bernstein, Allianz Global Investors, Eastspring Investments, Schroders, Fidelity International, Franklin Templeton Investments and JP Morgan Asset Management.

Foreign managers expand in Taiwan

Taiwan’s Financial Supervisory Commission (FSC) unveiled last week that seven overseas asset managers received privileges for their on-the-ground business.

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 on foreign asset managers, the regulator gives out benefits to reward those firms that show a commitment to the local market.

The FSC review assesses three major categories: Taiwan onshore presence; local assets under management; and cultivation of local talent. These broad areas then break down into eight criteria.

Alliance Bernstein, Allianz Global Investors, Eastspring Investments and Schroders, each meeting more than four requirements, were given a choice to select two privileges, the maximum number a firm can hold at one time. JP Morgan Asset Management, Fidelity International and Franklin Templeton Investments are eligible to choose one benefit, as they each fulfilled four assessment criteria – and all except the latter selected the privilege that allows them to introduce new types of funds.

For the second privilege, Allianz Global Investors and Eastspring Investments were awarded the ability to submit more products for approval at one time. Alliance Bernstein and Schroders obtained a higher allowance for taking exposure to mainland Chinese securities.

All the privileges chosen will be valid from 1 October 2018 to 30 September 2019.

Firm

Benefit 1Benefit 2

Alliance Bernstein

Introduce new types of fundsHigher allowance for taking exposure to mainland Chinese securities
Allianz Global InvestorsIntroduce new types of funds

Ability to submit more products for approval at one time

Eastspring Investments

Introduce new types of funds

Ability to submit more products for approval at one time

Fidelity International

Introduce new types of funds/
Franklin Templeton InvestmentsAbility to submit more products for approval at one time

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JP Morgan Asset Management

Introduce new types of funds/
SchrodersIntroduce new types of funds

Higher allowance for taking exposure to mainland Chinese securities

Source: FSC

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