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Partial Amendment to Regulations Governing Use of Insurers' Funds in Special Projects, Public Utilities and Social Welfare Enterprises
Trisha Chang/Shufei Yang
On 17 January 2013, the Financial Supervisory Commission (FSC) amended certain Articles of the Regulations Governing Use of Insurers' Funds in Special Projects, Public Utilities and Social Welfare Enterprises, effective on the same date. Main points of the amendment are as follows:
1.
added funeral facilities as an investable item of insurers’ funds for public utilities.
2.
permitted insurance enterprises to invest in social welfare facilities, including developing and building software and hardware infrastructure.
3.
raised the investment amount to be equal to 35% of paid-in capital of the investee of social welfare enterprises listed under Article 4 of said Regulations and permitted insurance enterprises to invest in securitization products of the aforesaid social welfare enterprises.
4.
specified eligible security or guarantee acceptable to an insurance company to extend loans as follows:
(1)
Loans guaranteed by a bank, or by a credit guarantee institution recognized by the competent authority;
(2)
Loans secured by personal property or real property;
(3)
Loans secured by qualified securities as defined in Article 146-1.
5.
stipulated that the Regulations for Extending Loans by Insurance Enterprises to Interested Parties shall apply mutatis mutandis in all aspects regarding extending loans by insurance enterprises to interested parties.
6.
added that an insurance enterprise whose capital adequacy ratio meets the requirements may be exempt from the restriction under Article 10 upon approval of the competent authority.
