Taiwan Eases Private School Investment Rules, Raising Single Asset Limit to 25%

Taiwan's Ministry of Education has relaxed investment regulations for private schools, allowing them greater flexibility in managing their surplus funds. The revision to the "Regulations Governing Investment and Use of Surplus Funds by Private Schools" increases the allowable investment ceiling in a single asset from 20% to 25%.

This adjustment is intended to enhance the financial autonomy of private educational institutions and encourage them to develop more diverse revenue streams. The ministry hopes this will bolster their capacity for academic research, talent cultivation, and ensure long-term operational sustainability and improved educational outcomes.

While loosening restrictions, the ministry also mandates that schools establish clear investment decision-making processes and risk control mechanisms. This ensures that the pursuit of higher returns does not compromise the safety of the funds. The revised regulations also specify that investments in stocks, corporate bonds, and beneficial certificates issued by the same company or trust company are now itemized for clearer guidance.

Further flexibility is provided, as schools can seek approval from the supervisory authority to raise the investment limit in a single asset up to 50%. However, to mitigate risk, the total shareholding in any single company remains capped at 20% of its outstanding shares. Existing investments exceeding the new limits, made before the revision, are permitted to continue without further investment.