FSC to Allow Foreign Bonds as Collateral for Broker Loans, Limited to Investment Grade

The Financial Supervisory Commission (FSC) announced plans to allow foreign bonds to serve as collateral for securities firms' non-purpose loan business to improve capital flexibility for investors. As of February, the inventory of foreign bonds held through sub-brokerage totaled NT$388.1 billion. Only bonds rated investment-grade by approved agencies will be eligible, with a loan-to-value ratio set at 60%. The FSC expects the new measure to take effect in the third quarter of 2026 following a 60-day notice period and system adjustments.