FSC Advances Asian Asset Management Hub with Special Legislation Covering Three Key Areas

(Central News Agency reporters Lu Yan-ci and Su Si-yun, Taipei, June 16) The Financial Supervisory Commission (FSC) is pushing forward with its vision for an Asian asset management hub, aiming to enhance Taiwan's asset management capabilities. The direction of a dedicated legislative framework is expected to be announced in July this year. The FSC explained that the special law will cover three main areas: asset management industry regulation, financial development, and tax burden, and a working group has already been established to draft the framework.

Tung Cheng-chang, Director-General of the FSC's Banking Bureau, stated at a regular press conference that the Asian asset hub policy has achieved its initial goal of being 'perceptible to the market' and is now entering a phase of tangible transformation. Legal development is the most critical component, and the FSC is currently reviewing policies implemented over the past two years to identify which measures require formal legislation.

Tung explained that a working group has been formed through the Financial Training and Research Institute to develop the initial framework of the draft legislation. The focus will be on the asset management industry, which currently lacks a clearly defined legal status. The legislation aims to formally recognize and define this sector.

He clarified that under existing regulations, 'asset management' refers specifically to asset management companies (AMCs) that handle non-performing loans from financial institutions. This differs significantly from the international concept of the 'asset management industry,' which involves safeguarding and managing individuals' cash, stocks, securities, and virtual assets. The new law will clearly define the scope of operations and the reasons for stringent regulatory oversight.

On the financial development front, the legislation will also address wealth retention, talent attraction, and talent cultivation. For instance, while the National Development Council has established living, employment, and medical support measures for foreign professionals, the FSC will examine whether the financial sector requires tailored incentives, which will be discussed within the special law.

Regarding taxation—the most publicly scrutinized aspect—Tung emphasized that tax policy is not only essential for government operations but also a key tool for incentivizing industry growth. The working group will inventory existing tax mechanisms and incentives and engage in consultations with relevant government departments and stakeholders.

When asked about the progress of the Tainan Special Zone (Chihkan Financial District), Tung stated that the FSC has held discussions with the Tainan City Government, sharing the successful experiences of the Kaohsiung Special Zone. The FSC has advised the city to take a proactive investment promotion approach, such as assessing available support measures and incentives for financial institutions—including rent subsidies and salary support for talent—as well as evaluating whether industrial clusters or specific client bases exist that could justify establishing a dedicated financial zone. (Edited by Yang Lan-hsuan) 1150616