Taiwan extends Kaohsiung asset management zone trial to mid-2027

Taiwan's Financial Supervisory Commission (FSC) has decided to extend the trial operations of the Kaohsiung Asset Management Special Zone until June 30, 2027. This move aims to further promote the island as an Asian asset management center and accommodate the practical needs of financial institutions.

The special zone was launched on April 1, 2026, with the "Operational Principles for Financial Institutions Applying to Enter Local Asset Management Special Zones for Trial Business." Since then, 57 financial institutions have been approved to participate in various trial programs. Many of these trials were set to expire on June 30, 2026.

FSC Bank Bureau Director Tong Cheng-chang explained that the extension is necessary because some institutions have had limited operating time and need more experience. Additionally, internal control regulations for banking businesses are still being developed by working groups focused on establishing an Asian asset management center. The extended deadline will allow institutions more time to accumulate practical experience, refine internal controls, and strengthen risk management.

The FSC is also reviewing the trial programs to identify those suitable for nationwide expansion and to consider adding new initiatives. Potential candidates for broader implementation include family office advisory services offered by banks and insurance products exempt from minimum mortality-coverage ratios for life insurance policies. The commission is also considering expanding the zone's offerings to include services for domestic high-net-worth clients, relaxing investment limits for certain offshore funds, and allowing dedicated accounts for insurance premium prepayments.

The special zone serves as a testing ground for financial innovations, aiming to build a robust foundation for nationwide application. The FSC emphasizes that participating institutions must adhere to regulations concerning information security, anti-money laundering, data protection, and customer rights. The commission will continue to assess trial outcomes, remove obstacles, and optimize regulations to foster an internationally competitive asset management ecosystem and achieve the goal of becoming a leading Asian asset management hub.

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The trial period for the Kaohsiung Asset Management Special Zone will be extended to the end of June next year.