Amendments to Articles 11 and 21, and Appendix 2 to 4 of Article 10 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises"
2025-04-10
The Financial Supervisory Commission (hereinafter referred to as FSC) stated that it amended Articles 11 and 21, and Appendix 2 through 4 of Article 10 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises" to avoid using age as a criterion, which could result in age-based discrimination. The amendment was also incorporated considerations related to the purpose of the international regulations on Total Loss-Absorbing Capacity Bonds (TLAC bonds), and the difference in risks between TLAC bonds and general bonds. To ensure the consistency of regulatory measures for all financial industries, the FSC referenced relevant international regulations and referenced the order based on Article 5, Paragraph 1 and Article 6, Paragraph 1 of the “Regulations Governing Securities Firms Accepting Orders to Trade Foreign Securities” (Jin-Guan-Zheng-Quan No. 1130353825 Order), regarding the restriction that securities firms may only accept orders from professional investors to trade TLAC bonds, and the related supporting measures. The public comment period for the amended Regulations has concluded and the amendment will soon be promulgated. The key points of the amendment are as follows:
1. The FSC stipulated that trust enterprises are permitted to accept orders from non-professional investors to invest in foreign bonds that do not include TLAC bonds. As some trust enterprises still accept orders from non-professional investors to invest in TLAC bonds, the FSC stipulated that, prior to the effective date of the amended regulations, trust enterprises that have already used trust property to invest in TLAC bonds may only accept selling orders from non-professional investors and may no longer accept orders to invest in such bonds. The FSC also amended the names of credit rating agencies in the Appendix (amended Article 11 and Appendix 2 to 4 of Article 10)
2. The FSC removed non-professional investors aged 70 and above from the list of individuals to whom trust enterprises may not solicit business to avoid discrimination based on age, so that such individuals are provided with access to the same suitable financial products after trust enterprises implement evaluation procedures such as know your customer (KYC), know your product (KYP), and suitability analysis, as well as risk attributes and tolerances based on customer evaluations in accordance with regulations. (amended Article 21).
The explanation and comparison table of the amended Article 11, Article 21, and Appendix 2 to 4 of Article 10 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises".
Contact unit:Trust and Bills Finance Co. and Payment Business Division, Banking Bureau
Telephone: (02)8968-9763
If you have any questions, please send an email to: https://fscmail.fsc.gov.tw
1. The FSC stipulated that trust enterprises are permitted to accept orders from non-professional investors to invest in foreign bonds that do not include TLAC bonds. As some trust enterprises still accept orders from non-professional investors to invest in TLAC bonds, the FSC stipulated that, prior to the effective date of the amended regulations, trust enterprises that have already used trust property to invest in TLAC bonds may only accept selling orders from non-professional investors and may no longer accept orders to invest in such bonds. The FSC also amended the names of credit rating agencies in the Appendix (amended Article 11 and Appendix 2 to 4 of Article 10)
2. The FSC removed non-professional investors aged 70 and above from the list of individuals to whom trust enterprises may not solicit business to avoid discrimination based on age, so that such individuals are provided with access to the same suitable financial products after trust enterprises implement evaluation procedures such as know your customer (KYC), know your product (KYP), and suitability analysis, as well as risk attributes and tolerances based on customer evaluations in accordance with regulations. (amended Article 21).
The explanation and comparison table of the amended Article 11, Article 21, and Appendix 2 to 4 of Article 10 of the "Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises".
Contact unit:Trust and Bills Finance Co. and Payment Business Division, Banking Bureau
Telephone: (02)8968-9763
If you have any questions, please send an email to: https://fscmail.fsc.gov.tw
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Update：
2025-06-11